Information cascade §

Date created: 2022-08-04

An information cascade is what is thought to lead to “bubbles” or fads, where individual actors are looking to others for information on how to act.

Public information exceeds private information; you know more what people are doing than why. This can lead to prices cascading up or down, for example.

One way to avoid information cascades is to display doubt publicly

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References §

• Link to website, bibtex from Zotero or note with book/blog/etc summary