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

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 without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be...

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Bibliographic Details
Published in:The Journal of political economy 1992-10, Vol.100 (5), p.992-1026
Main Authors: Bikhchandani, Sushil, Hirshleifer, David, Welch, Ivo
Format: Article
Language:English
Subjects:
Behavior
Change
Communication
Communities
Conformity
Culture
Economic externalities
Economic models
Fads
Information
Mating behavior
Political economy
Probability
Public information
Social life & customs
Social research
Theory
Tonsillectomy
Uniformity
Citations: Items that cite this one
Online Access:Get full text
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Summary: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 without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades.
ISSN:0022-3808
1537-534X
DOI:10.1086/261849