The goal of this paper is to highlight the importance of mimetism in the financial industry. We would like to make the difference between mimetism and herd behavior. The latter assumes a high level of bounded rationality and in its extreme version, the definition can also lead to the assumption that there are only very few intelligent players on the markets, the rest of the herd just follows the leader. This is not our prior. We prefer proposing the definition of mimetism: even when markets are constituted with intelligent and very rational people, the uncertainty about the future - in game theoretical wording: incomplete information - forces the players to seek coordination even if a crisis is in formation.
- herd behavior,
- systemic risk,
- moral hazard
Available at: http://works.bepress.com/warin/89/