We use case-based decision theory to evaluate the repeated choices of individuals who are using the experience of a selected set of other individuals over a given time horizon as the basis for their own decisions. It is observed that for certain parameter constellations a large fraction of individuals make identical decisions over a long period of time, which is not implied by the information. The result of this behavior is herding, which, however, has its origin in the way individuals process information rather than a desire to be part of the herd and imitating the behavior of others.
|Title of host publication||The Complex Networks of Economic Interactions|
|Subtitle of host publication||Essays in Agent-Based Economics and Econophysics|
|Editors||A Namatame, T Kaizouji, Y Aruka|
|Publication status||Published - 2006|
|Name||Lecture Notes in Economics and Mathematical Systems|