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Simple models and welfare effects of herd behavior

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Mustonen, Mikko
dc.contributor.advisor Murto, Pauli
dc.contributor.author Vilmunen, Markus
dc.date.accessioned 2019-07-21T16:02:39Z
dc.date.available 2019-07-21T16:02:39Z
dc.date.issued 2019
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/39318
dc.description.abstract This literature review examines properties of two basic models of herd behavior and drafts some welfare effects of herding. It introduces two simple models written in 1992; model by Banerjee and model by Bickhchandani et al. These models started the research of herd behavior in its current form and have been basis of several publications related on herd behavior since. This thesis examines the properties and limitations of simple formation of these models. Although the two models are capable of producing intuitive and robust results, they make several simplifying assumptions and departures from reality. Since both models assume uniform and constant payoff for each individual, introducing more complex ways of measuring welfare would make models more realistic. However, literature about welfare properties of herd behavior is currently almost non-existing. en
dc.format.extent 23
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Simple models and welfare effects of herd behavior en
dc.type G1 Kandidaatintyö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Taloustieteen laitos fi
dc.subject.keyword herd en
dc.subject.keyword behavior en
dc.subject.keyword cascade en
dc.subject.keyword welfare en
dc.identifier.urn URN:NBN:fi:aalto-201907214380
dc.type.ontasot Bachelor's thesis en
dc.type.ontasot Kandidaatintyö fi
dc.programme Taloustiede en


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