Herding and anti-herding: a model of reputational differentiation

摘要

We analyze a model related to the strategic herding literature where a second expert maximizes his expected second period value by conforming with a first expert ('herding'). In contrast to the herding literature we assume that an agent is most valuable if he is the only smart agent. If the value of being the only smart agent is sufficiently large, the second expert always opposes its predecessor's report; otherwise, herding may result.