Skip to main content
Article thumbnail
Location of Repository

Controlling the Herd: Applications of Herding Theory

By Daniel Sgroi

Abstract

The literature on informational cascades and herding theory has for a decade focused on the externality and suboptimal outcomes generated from decision-making when spaces are coarser than private information spaces. Much of the output has therefore been positive, not normative. This paper redresses this imbalance by detailing several direct applications for marketing and business arising from herding theory. We see that business practices such as encouraging early sales, or selling to groups rather than individual customers, can be justified theoretically by direct application of herding theory

Topics: Classification-JEL: D82, D83, L15, M30, informational cascade, herding, marketing strategies
Publisher: Faculty of Economics
Year: 2004
OAI identifier: oai:www.repository.cam.ac.uk:1810/285
Provided by: Apollo

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.