Pathological Outcomes of Observational Learning

By Lones Smith, Peter Norman Sørensen. 2000

863 citations recorded by the source corpus.

This paper systematically analyzes and enriches the observational learning paradigm of Banerjee (1992) and Bikhchandani, Hirshleifer, and Welch (1992).

Subfields: Economics and Econometrics, Management Science and Operations Research, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/92ffa5d4ab84510304f973763b0f5ca8131864ee

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Citations in the corpus

Herd Behaviour and Cascading in Capital Markets: A Review and Synthesis (2003, background): “For example, it can occur that there is always a probability that individuals use their own signals, but where that probability asymptotes toward zero; this leads to ‘limit cascades’ (Smith and Sorenson, 2000).”
Information Cascades: Replication and an Extension to Majority Rule and Conformity-Rewarding Institutions (2001, neutral): “The consensus in the literature is that a cascade is defined by a sequence of individuals whose decisions do not depend on their private information (see Bikhchandani et al., 1992 or Lones Smith and Peter Sørensen, 2000).”
Thought and Behavior Contagion in Capital Markets (2008, neutral): “Sometimes people can observe only the recent actions of others, a random sample of actions, or can only observe the behavior of neighbors in some geographic or other network.15 In such settings mistaken cascades can still form.”
Opinion Fluctuations and Disagreement in Social Networks (2010, neutral): “Existing models of communication and learning, based on Bayesian or non-Bayesian updating mechanisms, typically lead to consensus provided that communication takes place over a strongly connected network (e.g., Smith and Sorensen [46], Banerjee and Fudenberg [7], Acemoglu, Dahleh, Lobel and Ozdaglar”
Distinguishing Informational Cascades from Herd Behavior in the Laboratory (2004, background): “The most comprehensive study of observational learning is provided by Smith and Sørensen (2000) (SS).”
Cultural Change as Learning: The Evolution of Female Labor Force Participation over a Century (2011, neutral): “32See, e.g., Smith and Sorensen (2001).”
Naïve Herding in Rich-Information Settings (2010, background): “Smith and Sørensen (2000) have shown that such “unbounded private beliefs” preclude false herds even with finite action spaces.”
Information and the Skewness of Music Sales (2009, background): “…spillover).4 In a sequel to this paper, Hendricks, Sorensen, and Wiseman (2009) use a variant of the herding models of Banerjee (1992), Bikhchandani, Hirshleifer, and Welch (1992), and Smith and Sørensen (2000) to develop a framework for studying demand for search goods such as music albums.”