Animal spirits in information cascade

Li Jianbiao, Liu Guilin and Ju Long

Nankai Business Review International, 2012, vol. 3, issue 2, 167-186

Abstract: Purpose - The purpose of this paper is to better depict the features of individual and group behaviors in sequential decisions under the effect of public belief drift. Design/methodology/approach - In this paper, the authors design a two‐shots game which is closer to decisions condition in the real market by using the method of experimental economics two shots game. Findings - The experimental results show that information cascade occurs more frequently in the second stage and the decision accuracy is decreased. The conclusion may provide experimental evidence for the “Animal Spirits Theory” of Keynes. Additionally, decision‐maker ranking in the middle of the decision sequence systematically deviates from his/her private information in balance state. Originality/value - As existing information cascade theory of one shot decision fails to describe the belief‐dependent mechanism, the authors design the multi‐shots information cascade experiment; in which every individual decision maker has more than one sequential decision chance on the same event.

Keywords: Decision making; Information; Individual behaviour; Group behaviour; Information cascade; Belief dependence; Animal spirits; Balance; Experiment (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:nbripp:v:3:y:2012:i:2:p:167-186

DOI: 10.1108/20408741211244415

Access Statistics for this article

Nankai Business Review International is currently edited by Dr Xuexiu Wang and Professor Li Wei'an

More articles in Nankai Business Review International from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().