David Hirshleifer
Biographic Data
| ID | 1064393 |
|---|---|
| NAME | David Hirshleifer |
| GIVEN NAMES | David |
| FAMILY NAME | Hirshleifer |
| SIGNATURE | HIRSHLEIFER D |
| AFFILIATIONS | University of California, Los Angeles |
| ORCID | 0000-0003-0280-8882 |
| VERIFIED | Yes |
| TOTAL WORKS | 12 |
| TOTAL CITATIONS | 433 |
| AUTHOR COUNT | 12 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 1988 |
| LATEST PUBLICATION YEAR | 2024 |
| H-INDEX | 3 |
Information Cascades and Social Learning
Social learning is the updating of beliefs based on observation of others. Such observation can lead to efficient aggregation of information, but also to inaccurate decisions, fragility of mass behaviors, and, in the case of information cascades, to complete blockage of learning. We review the theory of information cascades and social learning and discuss important themes, insights, and applications of this literature as it has developed over the…
Information Cascades and Social Learning
Visibility Bias in the Transmission of Consumption Beliefs and Undersaving
We model visibility bias in the social transmission of consumption behavior. When consumption is more salient than non-consumption, people perceive that others are consuming heavily, and infer that future prospects are favorable. This increases aggregate consumption in a positive feedback loop. A distinctive implication is that disclosure policy interventions can ameliorate undersaving. In contrast with wealth-signaling models, information asymme…
How to Write an Effective Referee Report and Improve the Scientific Review Process
The review process for academic journals in economics has grown vastly more extensive over time. Journals demand more revisions, and papers have become bloated with numerous robustness checks and extensions. Even if the extra resulting revisions do on average lead to improved papers—a claim that is debatable—the cost is enormous. We argue that much of the time involved in these revisions is a waste of research effort. Another cause for concern is…
How psychological bias shapes accounting and financial regulation
Most applications of behavioral economics, finance, and accounting research to policy focus on alleviating the adverse effects of individuals’ biases and cognitive constraints (e.g. through investor protection rules or nudges). We argue that it is equally important to understand how psychological bias can cause a collective dysfunction – bad accounting policy and financial regulation. We discuss here how psychological bias on the part of the desi…
Overconfident Investors, Predictable Returns, and Excessive Trading
The last several decades have witnessed a shift away from a fully rational paradigm of financial markets toward one in which investor behavior is influenced by psychological biases. Two principal factors have contributed to this evolution: a body of evidence showing how psychological bias affects the behavior of economic actors; and an accumulation of evidence that is hard to reconcile with fully rational models of security market trading volumes…
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Futures Versus Share Contracting as Means of Diversifying Output Risk
Journal Article Futures Versus Share Contracting as Means of Diversifying Output Risk Get access David Hirshleifer, David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar Avanidhar Subrahmanyam Avanidhar Subrahmanyam Columbia University Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 103, Issue 418, 1 May 1993, Pages 620…
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
Cooperation in a repeated prisoners' dilemma with ostracism
Futures Trading, Storage, and the Division of Risk
Journal Article Futures Trading, Storage, and the Division of Risk: A Multiperiod Analysis Get access David Hirshleifer David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 99, Issue 397, 1 September 1989, Pages 700–719, https://doi.org/10.2307/2233766 Published: 01 September 1989
Risk, Futures Pricing, and the Organization of Production in Commodity Markets
This paper examines equilibrium in a spot and futures market with both primary producers (growers) and intermediate producers (processo rs). For a commodity that is subject to output shocks, processors tend to hedge long, in contrast with J. R. Hicks's theory of futures hedging. Nevertheless, if transaction costs are low, the two-stage production process brings about a downward futures price bias, consistent with Hicks's pricing prediction. But i…
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Overconfident Investors, Predictable Returns, and Excessive Trading
The last several decades have witnessed a shift away from a fully rational paradigm of financial markets toward one in which investor behavior is influenced by psychological biases. Two principal factors have contributed to this evolution: a body of evidence showing how psychological bias affects the behavior of economic actors; and an accumulation of evidence that is hard to reconcile with fully rational models of security market trading volumes…
Futures Trading, Storage, and the Division of Risk
Journal Article Futures Trading, Storage, and the Division of Risk: A Multiperiod Analysis Get access David Hirshleifer David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 99, Issue 397, 1 September 1989, Pages 700–719, https://doi.org/10.2307/2233766 Published: 01 September 1989
Risk, Futures Pricing, and the Organization of Production in Commodity Markets
This paper examines equilibrium in a spot and futures market with both primary producers (growers) and intermediate producers (processo rs). For a commodity that is subject to output shocks, processors tend to hedge long, in contrast with J. R. Hicks's theory of futures hedging. Nevertheless, if transaction costs are low, the two-stage production process brings about a downward futures price bias, consistent with Hicks's pricing prediction. But i…
How psychological bias shapes accounting and financial regulation
Most applications of behavioral economics, finance, and accounting research to policy focus on alleviating the adverse effects of individuals’ biases and cognitive constraints (e.g. through investor protection rules or nudges). We argue that it is equally important to understand how psychological bias can cause a collective dysfunction – bad accounting policy and financial regulation. We discuss here how psychological bias on the part of the desi…
Futures Versus Share Contracting as Means of Diversifying Output Risk
Journal Article Futures Versus Share Contracting as Means of Diversifying Output Risk Get access David Hirshleifer, David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar Avanidhar Subrahmanyam Avanidhar Subrahmanyam Columbia University Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 103, Issue 418, 1 May 1993, Pages 620…
Risk, Futures Pricing, and the Organization of Production in Commodity Markets
This paper examines equilibrium in a spot and futures market with both primary producers (growers) and intermediate producers (processo rs). For a commodity that is subject to output shocks, processors tend to hedge long, in contrast with J. R. Hicks's theory of futures hedging. Nevertheless, if transaction costs are low, the two-stage production process brings about a downward futures price bias, consistent with Hicks's pricing prediction. But i…
Cooperation in a repeated prisoners' dilemma with ostracism
Futures Trading, Storage, and the Division of Risk
Journal Article Futures Trading, Storage, and the Division of Risk: A Multiperiod Analysis Get access David Hirshleifer David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 99, Issue 397, 1 September 1989, Pages 700–719, https://doi.org/10.2307/2233766 Published: 01 September 1989
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
Futures Versus Share Contracting as Means of Diversifying Output Risk
Journal Article Futures Versus Share Contracting as Means of Diversifying Output Risk Get access David Hirshleifer, David Hirshleifer University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar Avanidhar Subrahmanyam Avanidhar Subrahmanyam Columbia University Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 103, Issue 418, 1 May 1993, Pages 620…
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Overconfident Investors, Predictable Returns, and Excessive Trading
The last several decades have witnessed a shift away from a fully rational paradigm of financial markets toward one in which investor behavior is influenced by psychological biases. Two principal factors have contributed to this evolution: a body of evidence showing how psychological bias affects the behavior of economic actors; and an accumulation of evidence that is hard to reconcile with fully rational models of security market trading volumes…
How to Write an Effective Referee Report and Improve the Scientific Review Process
The review process for academic journals in economics has grown vastly more extensive over time. Journals demand more revisions, and papers have become bloated with numerous robustness checks and extensions. Even if the extra resulting revisions do on average lead to improved papers—a claim that is debatable—the cost is enormous. We argue that much of the time involved in these revisions is a waste of research effort. Another cause for concern is…
How psychological bias shapes accounting and financial regulation
Most applications of behavioral economics, finance, and accounting research to policy focus on alleviating the adverse effects of individuals’ biases and cognitive constraints (e.g. through investor protection rules or nudges). We argue that it is equally important to understand how psychological bias can cause a collective dysfunction – bad accounting policy and financial regulation. We discuss here how psychological bias on the part of the desi…
Visibility Bias in the Transmission of Consumption Beliefs and Undersaving
We model visibility bias in the social transmission of consumption behavior. When consumption is more salient than non-consumption, people perceive that others are consuming heavily, and infer that future prospects are favorable. This increases aggregate consumption in a positive feedback loop. A distinctive implication is that disclosure policy interventions can ameliorate undersaving. In contrast with wealth-signaling models, information asymme…
Information Cascades and Social Learning
Information Cascades and Social Learning
Social learning is the updating of beliefs based on observation of others. Such observation can lead to efficient aggregation of information, but also to inaccurate decisions, fragility of mass behaviors, and, in the case of information cascades, to complete blockage of learning. We review the theory of information cascades and social learning and discuss important themes, insights, and applications of this literature as it has developed over the…
Economics (8 works) · Psychology (6 works) · Social Psychology (6 works) · Computer Science (4 works) · Financial economics (4 works) · Game Theory and Applications (4 works) · Information cascade (4 works) · Cognitive psychology (3 works) · Decision-Making and Behavioral Economics (3 works) · Economic theories and models (3 works)