[Download free pdf] “Nobody Goes There Anymore – it’s too Crowded:” Level-k Thinking in the Restaurant Game
♛ Federal Trade Commission ♛
| 2014-09-24 | Original language:English | PDF # 1 | 11.00 x.11 x8.50l,.30 | File Name: 150249082X | 46 pages
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In many decisions under uncertainty, individuals base their choices on what they learn from observing the choices of others as well as noisy private information, which can lead to herding behavior. However, herding may be discouraged if costs are incurred when an individual follows the action of too many others. For example, observing people on their way to a restaurant or a rival opening a new location provides information about the relative quality of their chosen alt...
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