Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades

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.

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Year of publication:	1998
Authors:	Bikhchandani, Sushil ; Hirshleifer, David ; Welch, Ivo
Published in:	Journal of Economic Perspectives. - American Economic Association - AEA. - Vol. 12.1998, 3, p. 151-170
Publisher:	American Economic Association - AEA

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Extent:	application/pdf
Type of publication:	Article
Notes:	DOI: 10.1257/jep.12.3.151
Classification:	D83 - Search, Learning, Information and Knowledge
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005562970