A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades.

1992/10/01 by Sushil Bikhchandani, David Hirshleifer, Ivo Welch · 6,744 citations
Engineering · Psychology · Social Sciences · #Cascade #Cognitive psychology #Conformity #Economics #Engineering #Evolutionary Game Theory and Cooperation #Fragility #Information cascade #Language and cultural evolution #Physics #Psychology #Social and Cultural Dynamics #Social psychology

paper · open access · doi:10.1086/261849

published in RePEc: Research Papers in Economics 100(5), 992-1026 (Federal Reserve Bank of St. Louis)

openalex publication_date 1992/10/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/06

Abstract

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 with regard to his own information. The authors argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades. Copyright 1992 by University of Chicago Press.

Citations

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