Download This PaperCorrelated Information Cascades
43 Pages Posted: 2 Nov 2021
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Correlated Information Cascades
Number of pages: 43
Posted: 02 Nov 2021
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Date Written: October 28, 2021
Abstract
This paper extends the model of information cascade (Bikhchandani, Hirshleifer, and Welch, 1992) by introducing two correlated queues of players. By comparing the equilibrium outcomes of the two-queue game with the benchmark one-queue game, this paper finds out that the observability of correlated players decreases the probability of correct permanent cascades.
Keywords: Informational cascades, imperfectly correlated players, multiple queues
JEL Classification: C72, D83
Suggested Citation: Suggested Citation
Wu, Jiemai, Correlated Information Cascades (October 28, 2021). Available at SSRN: https://ssrn.com/abstract=3951879 or http://dx.doi.org/10.2139/ssrn.3951879
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