Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
976658 | Physica A: Statistical Mechanics and its Applications | 2007 | 6 Pages |
Abstract
We analyze the dynamics of a forecasting game that exhibits the phenomenon of information cascades. Each agent aims at correctly predicting a binary variable and he/she can either look for independent information or herd on the choice of others. We show that dynamics can be analytically described in terms of a Langevin equation and its collective behavior is described by the solution of a Kramers' problem. This provides very accurate results in the region where the vast majority of agents herd, that corresponds to the most interesting one from a game theoretic point of view.
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
A. Veglio, M. Marsili,