A simple model of herd behavior

Banerjee, A. V. (1992). A simple model of herd behavior. Quarterly Journal of Economics, 107(3), 797-817.

Type

Journal article

Intellectual base

Primary research

Year

1992

Link

https://doi.org/10.2307/2118364matched

Cited from

behavioral_economics

Cited by

2 citations across 2 artifacts.

Primes

• Herding Behavior
  • Herding is not correlated behavior driven by correlated information.
• Information Cascade
  • The mechanism, formalized in seminal work by Bikhchandani, Hirshleifer, and Welch (1992) and Banerjee (1992), reveals how rational individual behavior—inference from observed choices—can produce collectively suboptimal outcomes and self-reinforcing paths.

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