Saturation Effects and Cyclical Herd Behavior
نویسنده
چکیده
We develop an original game-theoretical explanation of cyclical herd behaviors, where cyclicity occurs as a strategic equilibrium phenomena triggered by saturation effects associated with mass adoption of the same action. In our model, we show that herd behaviors occur almost surely, and so do cycles if saturation effects are present. Moreover, we show that the length of the transition phase between two consecutive herd behavior is at most the time needed for the saturation effect to disappear.
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