| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060655 | Economics Letters | 2012 | 4 Pages |
Abstract
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.
⺠We analyze the role played by the tie-breaking assumptions in reaching the equilibrium in Banerjee's model of herd behavior. ⺠We replaced one of the tie-breaking rules. ⺠Result1: players' strategies are parameter dependent. ⺠Result 2: an incorrect herd can be reversed. ⺠Result3: a correct herd is irreversible.
Keywords
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Andrea Morone,