The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Information Cascade Experiments

  • Lisa Anderson
  • Charles A. Holt
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2199

Abstract

Cascade experiments test the theory that conformity can result from individuals receiving private imperfect information and making public decisions in a sequence (see  Information Cascades).

Keywords

Bayes’ rule Imitation Imperfect information Information cascade experiments Private information 
This is a preview of subscription content, log in to check access

Bibliography

  1. Alsopp, L., and J.D. Hey. 2000. Two experiments to test a model of herd behavior. Experimental Economics 3: 121–136.CrossRefGoogle Scholar
  2. Anderson, L.R., and C.A. Holt. 1997. Information cascades in the laboratory. American Economic Review 87: 847–862.Google Scholar
  3. Bikhchandani, S., D. Hirshleifer, and I. Welch. 1992. A theory of fads, fashion, custom and cultural change as information cascades. Journal of Political Economy 100: 992–1026.CrossRefGoogle Scholar
  4. Çelen, B., S. Kariv, and A. Schotter. 2005. Words speak louder than actions and improve welfare: An experimental test of advice and social learning. Working paper, Center for Experimental Social Science, New York University.Google Scholar
  5. Cipriani, M., and A. Guarino. 2005. Herd behavior in a laboratory financial market. American Economic Review 95: 1227–1443.CrossRefGoogle Scholar
  6. Drehmann, M., J. Oechssler, and A. Roider. 2005. Herding and contrarian behavior in financial markets: An internet experiment. American Economic Review 95: 1203–1426.CrossRefGoogle Scholar
  7. Goeree, J.K., T.R. Palfrey, B.W. Rogers, and R.D. McKelvey. 2007. Self-correcting information cascades. Review of Economic Studies (forthcoming).Google Scholar
  8. Hung, A.A., and C.R. Plott. 2001. Information cascades: Replication and an extension to majority rule and conformity-rewarding institutions. American Economic Review 91: 1508–1520.CrossRefGoogle Scholar
  9. Kübler, D., and G. Weizsäcker. 2004. Limited depth of reasoning and failure of cascade formation in the laboratory. Review of Economic Studies 71: 425–441.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Lisa Anderson
    • 1
  • Charles A. Holt
    • 1
  1. 1.