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

1992/10/01 by Sushil Bikhchandani, David Hirshleifer, Ivo Welch · 5 citations
Social Sciences · #Language and cultural evolution #Evolutionary Game Theory and Cooperation #Social and Cultural Dynamics

paper · doi:10.1086/261849

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.

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