Knut-Eric Neset Joslin

Førsteamanuensis II - Institutt for samfunnsøkonomi


Heggedal, Tom-Reiel; Helland, Leif & Joslin, Knut-Eric Neset (2018)

Should I stay or should I go? Bandwagons in the lab

Journal of Economic Behavior and Organization, 150(June), s. 86- 97. Doi: 10.1016/j.jebo.2018.03.019

We experimentally investigate the impact of strategic uncertainty and complementarity on leader and follower behavior using the model of Farrell and Saloner (1985). At the core of the model are endogenous timing, irreversible actions and private valuations. We find that strategic complementarity strongly determines follower behavior. Once a subject decides to abandon the status quo the probability that other players jump on the bandwagon increases sharply. However, there is a reluctance to lead when leading is a conditional best response. We explain this deviation from the neo-classical equilibrium by injecting some noise in the equilibrium concept. We also find that cheap talk improves efficiency.

Akademisk grad
År Akademisk institusjon Grad
2011 BI Norwegian Business School Master of Science
År Arbeidsgiver Tittel
2012 - Present BI Norwegian Business School PhD Candidate