On bubbling dynamics generated by a stochastic model of herd behavior

Enrico Zaninotto, Yuri (Yuriy) Kaniovski (Kaniovskyi) () and Loris Gaio
Additional contact information
Enrico Zaninotto: Dipartimento di Informatica e Studi Aziendali, Universit, di Trento, Via Inama 4, 38100 Trento, Italy

Journal of Evolutionary Economics, 2002, vol. 12, issue 5, 525-538

Abstract: This paper suggests a class of stochastic collective learning processes exhibiting very irregular behavior. In particular, there are multimodal long run distributions. Some of these modes may vanish as the population size increases. This may be thought of as "bubbles" persistent for a finite range of population sizes but disappearing in the limit. The limit distribution proves to be a discontinuous function of parameters determining the learning process. This gives rise to another type of "bubbles": limit outcomes corresponding to small perturbations of parameters are different. Since an agent's decision rule involves imitation of the majority choice in a random sample of other members of the population, the resulting collective dynamics exhibit "herding" or "epidemic" features.

Keywords: Herd; behavior; -; Markov; chain; -; Bubbling; dynamics (search for similar items in EconPapers)
Date: 2003-01-13
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.de/link/service/journals/00191/papers/2012005/20120525.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

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:spr:joevec:v:12:y:2002:i:5:p:525-538

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/191/PS2

Access Statistics for this article

Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo

More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().