Herding Without Following the Herd: The Dynamics of Case-Based Decisions with Local Interactions

Andreas Krause ()
Additional contact information
Andreas Krause: University of Bath

A chapter in The Complex Networks of Economic Interactions, 2006, pp 179-191 from Springer

Abstract: Summary We use case-based decision theory to evaluate the repeated choices of individuals who are using the experience of a selected set of other individuals over a given time horizon as the basis for their own decisions. It is observed that for certain parameter constellations a large fraction of individuals make identical decisions over a long period of time, which is not implied by the information. The result of this behavior is herding, which, however, has its origin in the way individuals process information rather than a desire to be part of the herd and imitating the behavior of others.

Keywords: Case-based decision theory; local interactions; networks; decisionmaking; herding; fads (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:lnechp:978-3-540-28727-8_12

Ordering information: This item can be ordered from
http://www.springer.com/9783540287278

DOI: 10.1007/3-540-28727-2_12

Access Statistics for this chapter

More chapters in Lecture Notes in Economics and Mathematical Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().