Herding And Social Pressure In Trading Tasks: A Behavioural Analysis

• DOI: 10.17863/cam.5145
• Publication Date: 2007-05-01
• Authors: Michelle Baddeley; Demetris Pillas; Yorgos Christopoulos; Wolfram Schultz; Phillipe Tobler
• Keywords: Herd behavior; Boldness

We extend the experimental literature on Bayesian herding using evidence from a financial decision-making experiment. identify significant propensities to herd increasing with degree of herd-consensus. test various models capture differential impacts Bayesian-style thinking versus behavioural factors. find statistically associations between and individual characteristics such as age personality traits. Overall, our is consistent explanations outcome social Suggestions for further research are outlined include verifying these findings identifying neurological correlates herd.