How will they fare on Judgement Day? Reputational Herding in Professional Communities
Abstract
This paper presents a theoretical model of decision-making by professionals within
the same field. The decision-makers consider reputation effects that result both from
their relative actions and from the absolute outcomes. By combining the idea of relative
actions from the managerial reputation herding models and that of outcomes from the
information cascades models, one can make comparisons across a wide range of professions.
The importance of outcomes, as a proxy for the relative importance of the two considerations,
is a function of time. The model hopes to predict a herding equilibrium is more likely
when ‘judgment day’ – the time when the outcome is reveled – is far into the future.
Type
Honors thesisDepartment
EconomicsPermalink
https://hdl.handle.net/10161/3565Citation
Oprea, Alexandra (2011). How will they fare on Judgement Day? Reputational Herding in Professional Communities.
Honors thesis, Duke University. Retrieved from https://hdl.handle.net/10161/3565.Collections
More Info
Show full item record
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Rights for Collection: Undergraduate Honors Theses and Student papers
Works are deposited here by their authors, and represent their research and opinions, not that of Duke University. Some materials and descriptions may include offensive content. More info