Informational Cascades with Continuous Action Spaces

Steffen Huck and Jörg Oechssler

Game Theory and Information from University Library of Munich, Germany

Abstract: The recent literature on informational cascades has nurtured the impression that cascades can occur only if the action space is coarser than the signal space. In particular, it is sometimes claimed that with continuous action spaces cascades are impossible. In this note we present a simple counter-example showing that this conclusion is not necessarily warranted.

Keywords: herding; cascades; information (search for similar items in EconPapers)
JEL-codes: D8 (search for similar items in EconPapers)
Pages: 6 pages
Date: 1997-10-13
Note: pages: 6
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Related works:
Journal Article: Informational cascades with continuous action spaces (1998)
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