A simple model of herd behavior, a comment

In this paper we analyze the role played by the tie-breaking assumptions in Banerjee's model of herd behavior. Changing one assumption we obtain three important results: players' strategies are parameter dependent; an incorrect herd could be reversed; a correct herd is irreversible.

► We analyze the role played by the tie-breaking assumptions in reaching the equilibrium in Banerjee's model of herd behavior. ► We replaced one of the tie-breaking rules. ► Result1: players' strategies are parameter dependent. ► Result 2: an incorrect herd can be reversed. ► Result3: a correct herd is irreversible.