We extend the Bikhchandani, Hirshleifer and Welch (1992) informational cascade framework to allow for asymmetric signal accuracy. Simulations demonstrate that even
small departures from symmetry may lead to non-monotonic effects of signal accuracy
on the likelihood of an inefficient cascade.
Type of Material
Working Paper
Publisher
University College Dublin. School Of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP06/20
Copyright (Published Version)
2006 School Of Economics, University College Dublin