An information cascade occurs when individuals in a group make decisions based on the observations or actions of others rather than on their own private information. This phenomenon typically happens in situations where people are uncertain about what to do, and they rely on the behavior of those who went before them as a shortcut to inform their choices. The process can be summarized as follows: 1. **Initial Observation**: A few individuals make a decision based on their private information or preferences.
Articles by others on the same topic
There are currently no matching articles.