GAUK No. 59110 - Do information cascades arise easier under time pressure? Experimental approach.
| Principal investigator: | PhDr. Lubomír Cingl Ph.D. |
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| Collaborators: |
doc. PhDr. Michal Bauer Ph.D. |
| Description: | Information cascades as a form of rational herding help to explain real-life phenomena such as fads, fashion, creation of 'bubbles' in financial markets or conformity in general. However, researchers normally imposed the uncertainty about the private signal by providing a task probabilistic in its nature and the decision-making was sequential. On the contrary, we will conduct and experiment with a task that is not probabilistic and the order of decision-making is real time. We impose uncertainty of private signal by making the payoff time-dependent and gradually reduce the total time per task, which is expected to make the participants prone to imitate the behavior of others, even though the others will be exposed to the same conditions. The time-pressure is expected to induce stress reaction, which we control for by objectification of stress by measuring a proxy variable – the heart rate. The results may cast light on everyday decision making mechanisms that are made under time pressure as well as help to question the neoclassical notion of rationality. |
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| Finance: | GAUK, No. 59110 |
| End date: | 12/2010 |
| Publications: | Does Herd Behavior Arise Easier under Time Pressure? Experimental Approach. |
| Conferences: |
