INFORMATIONAL CASCADES WITH CONTINUOUS ACTION SPACES

Authors
HUCK S OECHSSLER J
Citation
S. Huck et J. Oechssler, INFORMATIONAL CASCADES WITH CONTINUOUS ACTION SPACES, Economics letters, 60(2), 1998, pp. 163-166
Citations number
3
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
60
Issue
2
Year of publication
1998
Pages
163 - 166
Database
ISI
SICI code
0165-1765(1998)60:2<163:ICWCAS>2.0.ZU;2-M
Abstract
The recent literature on informational cascades has nurtured the impre ssion that cascades can occur only if the action space is coarser than the signal space. In particular, it is sometimes claimed that with co ntinuous action spaces cascades are impossible. In this note we presen t a simple counter-example showing that this conclusion is not necessa rily warranted. (C) 1998 Elsevier Science S.A. All rights reserved.