We undertook the first market trading experiments that allowed heterogeneously informed subjects to trade in endogenous time, collecting over 2000 observed trades. Subjects’ decisions were generally in line with the predictions of exogenous-time financial herding theory when that theory is adjusted to allow rational informational herding and contrarianism. While herding and contrarianism did no...

We show that the herding procedure of Welling (2009b) takes exactly the form of a standard convex optimization algorithm— namely a conditional gradient algorithm minimizing a quadratic moment discrepancy. This link enables us to invoke convergence results from convex optimization and to consider faster alternatives for the task of approximating integrals in a reproducing kernel Hilbert space. W...

The purpose of the present study is to investigate the effect of behavioral variables on overconfidence in management, herding behavior and investors' emotional tendency on stock return. To this end, by using the data of firms listed in the Iran's Stock Exchange during the seven-year period of 2010-2016, overconfidence index in management, the herding behavior of the investors and the emotional...

The primary objective of this chapter is to discuss the effects of genetics on the behavior of herding animals during handling and restraint. Compared to rodents, poultry, and fruit flies (Drosophilia) very little behavioral genetics work has been done on livestock. During our careers we have observed thousands of animals under many different conditions. In this chapter we will discuss our obse...

This paper studies herding behavior of institutional investors in international markets. First, we document the existence of wide-spread herding in 41 countries (referred to as ‘‘target countries’’ hereafter) in the sample. We then examine the relation between contemporaneous institutional demand and future returns and find that institutional herding stabilizes prices. Next, we examine the rela...

We review theory and evidence relating to herd behavior, payo and reputational interactions, social learning, and informational cascades in capital markets. We o er a simple taxonomy of e ects, and evaluate how alternative theories may help explain evidence on the behavior of investors, rms, and analysts. We consider both incentives for parties to engage in herding or cascading, and the incenti...

Herding behavior in group (collaborative) decision making has been studied purely as imitation of others and discounting own information. However, collaboration is a dynamic process and decision making should be viewed with this dynamic in mind. Drawing on the "The Laws of Imitation" from sociology, we offer a new perspective to understand herding behavior in group decision making. By acknowled...