Models of herd behavior and informational cascades often make strong assumptions about the information available to agents, the nature of the choices being made, the timing of decisions, and the symmetry of equilibrium. This note considers the robustness of some results from the literature on social learning and argues that the inefficiency of equilibrium in the presence of informational externalities and strategic delay may be the most important lesson of all.
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Douglas Gale (1996) studied this question.
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