Rational Herds

Social learning involves individuals learning from the behavior of others and may lead to spectacular outcomes such as herding fads frenzies crashes and booms. Providing a synthesis of the theoretical literature of the last ten years Christophe Chamley demonstrates how these pathologies may occur in a society of rational individuals. His book provides informal as well as technical analyses for readers interested in social behavior and more advanced researchers in economics finance and other social sciences. A key feature is the inclusion of exercises in each chapter with proofs written out for students.