EconStor >
Max-Planck-Institut für Ökonomik, Jena >
Jena Economic Research Papers, MPI für Ökonomik >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/56839
  
Title:"Do we follow others when we should? A simple test of rational expectations": Comment PDF Logo
Authors:Ziegelmeyer, Anthony
March, Christoph
Krügel, Sebastian
Issue Date:2012
Series/Report no.:Jena economic research papers 2012,006
Abstract:Weizsäcker (2010) estimates the payoff of actions to test rational expectations and to measure the success of social learning in information cascade experiments. He concludes that participants perform poorly when learning from others and that rational expectations are violated. We show that his estimated payoffs rely on estimates of the publicly known prior and signal qualities which may lead the formulated test of rational expectations to generate false positives. We rely on the true values of the prior and signal qualities to estimate the payoff of actions. We confirm that the rational expectations hypothesis is rejected, but we measure a much larger success of social learning.
Subjects:information cascades
laboratory experiments
quantal response equilibrium
JEL:C92
D82
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

Files in This Item:
File Description SizeFormat
687471303.pdf633.95 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/56839

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.