This study uses the linear model based on the notion of cross-sectional standard deviation (CSSD) by Christie and Huang (1995) and nonlinear model based on cross-sectional absolute deviation (CSAD) proposed by Chang et al. (2000) to provide evidence for the existence of herding behaviour by investors in Taiwan during the period January 4, 2000 to December 28, 2012. We examine whether returns, v...

So far, there has been no conclusion on the mechanism for herding, which is often discussed in the academia. Assuming escaping behavior of individuals in emergency is rational rather than out of panic according to recent findings in social psychology, we investigate the behavioral evolution of large crowds from the perspective of evolutionary game theory. Specifically, evolution of the whole po...

We study the behavior of strategic customers in an open-routing service network with multiple stations. When a customer enters the network, she is free to choose the sequence of stations that she visits, with the objective of minimizing her expected total system time. We propose a two-station game with all customers present at the start of service and deterministic service times, and we find th...

Herding is a form of convergent social behaviour that can be broadly defined as the alignment of the thoughts or behaviours of individuals in a group (herd) through local interaction and without centralized coordination. We suggest that herding has a broad application, from intellectual fashion to mob violence; and that understanding herding is particularly pertinent in an increasingly intercon...

This paper …nds that fund herding, de…ned as the tendency of a mutual fund to follow past aggregate institutional trades, is an important predictor of mutual fund performance. Examining actively managed U.S. equity mutual funds over the period 1990-2009, we …nd that funds with a higher herding tendency achieve lower future returns. The performance gap between herding and antiherding funds is pe...

In this study, we employ an innovative new methodology suggested by Bernhardt et al. (2006) to examine the herding (or anti-herding) behavior of German analysts in case of earnings forecasts. Our methodology avoids well-known shortcomings often encountered in related studies, such as, e.g., correlated information signals, unexpected common shocks to earnings, systematic optimism or pessimism or...

Title of Dissertation: HERD BEHAVIOR IN VOLUNTARY DISCLOSURE DECISIONS: AN EXAMINATION OF CAPITAL EXPENDITURE FORECASTS Nerissa Christine Brown, Doctor of Philosophy, 2005 Dissertation Directed By: Professor Lawrence A. Gordon Department of Accounting and Information Assurance Professor Russell R. Wermers Department of Finance This study documents behavior consistent with herding in voluntary d...

Abstract Herding is a deterministic algorithm used to generate data points regarded as random samples satisfying input moment conditions. This based on high-dimensional dynamical system and rooted in the maximum entropy principle of statistical inference. We propose an extension, entropic herding, which generates sequence distributions instead points. derived herding from optimization problem o...

We study lender behavior in the peer-to-peer (P2P) lending market, where individuals bid on unsecured microloans requested by other individual borrowers. Online P2P exchanges are growing, but lenders in this market are not professional investors. In addition, lenders have to take big risks because loans in P2P lending are granted without collateral. While the P2P lending market shares some char...

We have created a simulated world ("BioLand") designed to support experiments on the evolution of cooperation, competition, and communication. In this particular experiment we have simulated the evolution of herding behavior in prey animals. We placed a population of simulated prey animals into an environment with a population of their predators. The behavior of each of the animals is controlle...