Bikhchandani, Sushil; Hirshleifer, David; Tamuz, Omer; … - National Bureau of Economic Research - 2021
An information cascade is a situation in which an agent who observes others chooses the same action irrespective of the … value of the agent's private information signal. Theoretical models have found that cascades result in poor information … aggregation, inaccurate decisions, and fragility of mass behaviors. We review the theory of information cascades and social …