The effect of rating agencies on herd behaviour

  • Giovanni Ferri
  • Andrea Morone
Regular Article


This paper purports to provide some evidence on the effect of rating agencies in financial markets. By means of a laboratory experiment, we investigate the effect and interaction between private and public information. We reached two conclusions: (1) indeed, the rating agency can speed up price convergence, (2) but not always to the fundamental price.


Herd behaviour Informational cascades Rating agency Bubble 

JEL Classification

C91 D82 D83 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Università degli Studi di Bari, Aldo MoroBariItaly
  2. 2.LUMSA UniversityRomeItaly
  3. 3.Universitat Jaume ICastellónSpain

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