A shared identity promotes herding in an information cascade game

Berger S, Feldhaus C, Ockenfels A


Abstract
Our research addresses the effect of shared vs. mixed group identities in an information cascade game. We vary whether subjects always choose after a decision maker who shares the same identity or after a decision maker with a different identity. We find that subjects' inclination to follow their predecessor is stronger in groups uniquely consisting of ingroup members compared to mixed groups. We relate this result to recent social cognition research.



Publication type
Article in Journal

Peer reviewed
Yes

Publication status
Published

Year
2018

Journal
Journal of the Economic Science Association

Volume
4

Issue
1

Start page
63

End page
72

ISSN
2199-6784

DOI

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