Reputational Herding in Financial Markets: A Laboratory Experiment

References

• Akerlof, G. and R. Shiller. Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism (new ed.). Princeton: Princeton University Press, 2008.
   Google Scholar
• Anderson, L. and C. Holt. “Information Cascades in the Laboratory.” American Economic Review, 87, (1997), pp. 847–862.
   Web of Science ®Google Scholar
• Avery, C. and P. Zemsky. “Multidimensional Uncertainty and Herd Behavior in Financial Markets.” American Economic Review, 88, (1998), pp. 724–748.
   Web of Science ®Google Scholar
• Banerjee, A. “A Simple Model of Herd Behavior.” Quarterly Journal of Economics, 107, (1992), pp. 797–817.
   Web of Science ®Google Scholar
• Bikhchandani, S., D. Hirshleifer and I. Welch. “A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades.” Journal of Political Economy, 100, (1992), pp. 992–1026.
   Web of Science ®Google Scholar
• Bikhchandani, S. and S. Sharma. Herd Behavior in Financial Markets: A Review. Policy Working Paper, International Monetary Fund (2000).
   Google Scholar
• Blasco, N. and S. Ferreruela. “Testing Intentional Herding in Familiar Stocks: An Experiment in an International Context.” Journal of Behavioral Finance, 9, (2008), pp. 72–84.
   Web of Science ®Google Scholar
• Chevalier, J. and G. Ellison. “Career Concerns of Mutual Fund Managers.” Quarterly Journal of Economics, 114, (1999), pp. 389–432.
   Web of Science ®Google Scholar
• Cipriani, M. and A. Guarino. “Herd Behavior in a Laboratory Financial Market.” American Economic Review, 95, (2005), pp. 1427–1443.
   Web of Science ®Google Scholar
• Daniel, K., D. Hirshleifer and S. H. Teoh. “Investor Psychology in Capital Markets: Evidence and Policy Implications.” Journal of Monetary Economics, 49, (2002), pp. 139–209.
   Web of Science ®Google Scholar
• Dasgupta, A. and A. Prat. “Financial Equilibrium with Career Concerns.” Theoretical Economics, 1, (2006), pp. 67–93.
   Google Scholar
• Dasgupta, A. and A. Prat. “Information Aggregation in Financial Markets with Career Concerns.” Journal of Economic Theory, 143, (2008), pp. 83–113.
   Web of Science ®Google Scholar
• Dohmen, T., A. Falk, D. Huffman, U. Sunde, J. Schupp and G. Wagner. “Individual Risk Attitudes: Measurement, Determinants, and Behavioral Consequences.” Journal of the European Economic Association, 9, (2011), pp. 522–550.
   Web of Science ®Google Scholar
• Drehmann, M., J. Oechssler and A. Roider. “Herding and Contrarian Behavior in Financial Markets: An Internet Experiment.” American Economic Review, 95, (2005), pp. 1403–1426.
   Web of Science ®Google Scholar
• Drehmann, M., J. Oechssler and A. Roider. “Herding With and Without Payoff Externalities: An Internet Experiment.” International Journal of Industrial Organization, 25, (2007), pp. 391–415.
   Web of Science ®Google Scholar
• Ehrbeck, T. and R. Waldmann. “Why Are Professional Forecasters Biased? Agency Versus Behavioral Explanations.” Quarterly Journal of Economics, 111, (1996), pp. 21–40.
   Web of Science ®Google Scholar
• Eil, D. and J. M. Rao. “The Good News–Bad News Effect: Asymmetric Processing of Objective Information about Yourself.” American Economic Journal: Microeconomics, 3, (2011), pp. 114–138.
   Web of Science ®Google Scholar
• Glosten, L. and P. Milgrom. “Bid, Ask and Transaction Prices in a Specialist Market with Heterogeneously Informed Traders.” Journal of Financial Economics, 14, (1985), pp. 71–100.
   Web of Science ®Google Scholar
• Graham, J. “Herding Among Investment Newsletters: Theory and Evidence.” Journal of Finance, 54, (1999), pp. 237–268.
   Web of Science ®Google Scholar
• Greiner, B. “An Online Recruitment System for Economic Experiments.” In K. Kremer and V. Macho, eds., Forschung und Wissenschaftliches Rechnen. GWDG Bericht 63. Göttingen: Gesellschaft für Wissenschaftliche Datenverarbeitung, 2004.
   Google Scholar
• Hirshleifer, D. and S. H. Teoh. “Herd Behavior and Cascading in Capital Markets: A Review and Synthesis.” European Financial Management, 9, (2003), pp. 25–66.
   Google Scholar
• Holmstrom, B. “Managerial Incentive Problems: A Dynamic Perspective.” Review of Economic Studies, 66, (1999), pp. 169–182.
   Web of Science ®Google Scholar
• Hong, H. and J. Kubik. “Analyzing the Analysts: Career Concerns and Biased Earnings Forecasts.” Journal of Finance, 58, (2003), pp. 313–351.
   Web of Science ®Google Scholar
• Hong, H., J. Kubik and A. Solomon. “Security Analysts' Career Concerns and Herding of Earnings Forecasts.” RAND Journal of Economics, 31, (2000), pp. 121–144.
   Web of Science ®Google Scholar
• Huddart, S. “Reputation and Performance Fee Effects on Portfolio Choice by Investment Advisers.” Journal of Financial Markets, 2, (1999), pp. 227–271.
   Google Scholar
• Irlenbusch, B. and D. Sliwka. “Career Concerns in a Simple Experimental Labour Market.” European Economic Review, 50, (2006), pp. 147–170.
   Web of Science ®Google Scholar
• Koch, A., A. Morgenstern and P. Raab. “Career Concerns Incentives: An Experimental Test.” Journal of Economic Behavior and Organization, 72, (2009), pp. 571–588.
   Web of Science ®Google Scholar
• Lamont, O. “Macroeconomic Forecasts and Microeconomic Forecasters.” Journal of Economic Behavior and Organization, 48, (2002), pp. 265–280.
   Web of Science ®Google Scholar
• Massa, M. and R. Patgiri. “Compensation and Managerial Herding: Evidence from the Mutual Fund Industry.” Mimeo, (2007).
   Google Scholar
• Palomino, F. “Noise Trading in Small Markets.” Journal of Finance, 51, (1996), pp. 1537–1550.
   Web of Science ®Google Scholar
• Park, A. and H. Sabourian. “Herding and Contrarian Behavior in Financial Markets.” Econometrica, 79, (2011), pp. 973–1026.
   Web of Science ®Google Scholar
• Park, A. and D. Sgroi. “Herding and Contrarian Behavior in Financial Markets: An Experimental Analysis.” Mimeo, (2010).
   Google Scholar
• Scharfstein, D. and J. Stein. “Herd Behavior and Investment.” American Economic Review, 80, (1990), pp. 465–79.
   Web of Science ®Google Scholar
• Sias, R. “Institutional Herding.” Review of Financial Studies, 17, (2004), pp. 165–206.
   Web of Science ®Google Scholar
• Villatoro, F. “The Delegated Portfolio Management Problem: Reputation and Herding.” Journal of Banking and Finance, 33, (2009), pp. 2062–2069.
   Web of Science ®Google Scholar
• Weizsacker, G. “Do We Follow Others When We Should? A Simple Test of Rational Expectations.” American Economic Review, 100, (2010), pp. 2340–2360.
   Web of Science ®Google Scholar
• Welch, I. “Sequential Sales, Learning, and Cascades.” Journal of Finance, 47, (1992), pp. 695–732.
   Web of Science ®Google Scholar
• Welch, I. “Herding Among Security Analysts.” Journal of Financial Economics, 58, (2000), pp. 369–39.
   Web of Science ®Google Scholar