Collective behavior of the complex socio-economic systems is heavily influenced by the herding, group, behavior of individuals. The importance of the herding behaviormay enable the control of the collective behavior of the individuals. In this contribution we consider a simple agent-based herding model modified to include agents with controlled state. We show that in certain case even the small...

In this study, we employ an innovative new methodology suggested by Bernhardt et al. (2006) to examine the herding (or anti-herding) behavior of German analysts in case of earnings forecasts. Our methodology avoids well-known shortcomings often encountered in related studies, such as, e.g., correlated information signals, unexpected common shocks to earnings, systematic optimism or pessimism or...

This paper examines herding behavior in global markets. By applying daily data for 18 countries from May 25, 1988, through April 24, 2009, we find evidence of herding in advanced stock markets (except the US) and in Asian markets. No evidence of herding is found in Latin American markets. Evidence suggests that stock return dispersions in the US play a significant role in explaining the non-US ...

We study lender behavior in the peer-to-peer (P2P) lending market, where individuals bid on unsecured microloans requested by other individual borrowers. Online P2P exchanges are growing, but lenders in this market are not professional investors. In addition, lenders have to take big risks because loans in P2P lending are granted without collateral. While the P2P lending market shares some char...

We have created a simulated world ("BioLand") designed to support experiments on the evolution of cooperation, competition, and communication. In this particular experiment we have simulated the evolution of herding behavior in prey animals. We placed a population of simulated prey animals into an environment with a population of their predators. The behavior of each of the animals is controlle...

Online shopping often requires consumers to choose among multiple products without detailed information about the quality. Herding is common in situations where consumers infer product quality from other consumers’ choices and incorporate that information into their own decision-making process. The Internet affects the herding phenomenon in two ways. On the one hand, it provides more informatio...

We examine herding behavior of domestic and foreign investors in the Indonesian stock market. We document that both domestic and foreign investors from a particular brokerage firm tend to herd. The foreign investors exhibit a greater propensity to herd than domestic investors. However, when examining investor trading across brokerage firms, we find only weak evidence of herding by domestic inve...

Title of Dissertation: HERD BEHAVIOR IN VOLUNTARY DISCLOSURE DECISIONS: AN EXAMINATION OF CAPITAL EXPENDITURE FORECASTS Nerissa Christine Brown, Doctor of Philosophy, 2005 Dissertation Directed By: Professor Lawrence A. Gordon Department of Accounting and Information Assurance Professor Russell R. Wermers Department of Finance This study documents behavior consistent with herding in voluntary d...

This paper investigates whether Japanese banks followed herd behavior in lending in local financial markets during 1980—1999. By using loan data from Japanese banks, arranged by geographical area, we find leader-follower relationships between lending behavior of different types of banks. Specifically, herding is mostly caused by local banks. Local banks follow major banks in urban cities, while...

This paper examines the structural change of mutual fund herding in china stock market,an important investment behavior of institutional investors. A self-normalization based KolmogorovSmirnov test is employed to test the change point of herding from 2002 to 2011, the results suggest that there really be structural change points in mutual fund herding. The mutual fund herding changed at Decembe...