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dc.contributor.authorBaddeley, Michelleen_GB
dc.contributor.authorBurke, C.en_GB
dc.contributor.authorSchultz, W.en_GB
dc.contributor.authorTobler, P.en_GB
dc.date.accessioned2012-11-15T15:26:06Z
dc.date.available2012-11-15T15:26:06Z
dc.date.issued2012-05-09en_GB
dc.identifier.otherCWPE1225
dc.identifier.urihttp://www.dspace.cam.ac.uk/handle/1810/243969
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/243969
dc.description.abstractExperimental analyses have identified significant tendencies for individuals to follow herd decisions, a finding which has been explained using Bayesian principles. This paper outlines the results from a herding task designed to extend these analyses using evidence from a functional magnetic resonance imaging (fMRI) study. Empirically, we estimate logistic functions using panel estimation techniques to quantify the impact of herd decisions on individuals' financial decisions. We confirm that there are statistically significant propensities to herd and that social information about others' decisions has an impact on individuals' decisions. We extend these findings by identifying associations between herding propensities and individual characteristics including gender, age and various personality traits. In addition fMRI evidence shows that individual differences correlate strongly with activations in the amygdala ヨ an area of the brain commonly associated with social decision-making. Individual differences also correlate strongly with amygdala activations during herding decisions. These findings are used to construct a two stage least squares model of financial herding which confirms that individual differences and neural responses play a role in modulating the propensity to herd.en_GB
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectherding; social influenceen_GB
dc.subjectindividual differencesen_GB
dc.subjectneuroeconomicsen_GB
dc.subjectfMRIen_GB
dc.subjectamygdalaen_GB
dc.titleHerding in Financial Behaviouren_GB
dc.typeWorking Paperen_GB
dc.identifier.doi10.17863/CAM.4964
dc.identifier.urlhttp://www.econ.cam.ac.uk/dae/repec/cam/pdf/cwpe1225.pdf


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