Do Markets Drive Out Lemmings - or Vice Versa?

  title={Do Markets Drive Out Lemmings - or Vice Versa?},
  author={J. Hey and A. Morone},
  journal={Behavioral & Experimental Economics},
  • J. Hey, A. Morone
  • Published 2004
  • Economics
  • Behavioral & Experimental Economics
  • This paper investigates experimentally a market inspired by two strands of literature: on herd behaviour in non-market situations, and on the aggregation of private information in markets. The first strand suggests that socially undesirable herd behaviour may result when information is private; the second suggests that in a market context the price mechanism may cause the private information to be aggregated correctly and efficiently. This latter therefore suggests that socially undesirable… CONTINUE READING
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