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

Теория увлечений, моды, обычаев и культурных изменений как информационных каскадов
Sushil Bikhchandani, David Hirshleifer, Ivo Welch
1992-10-01

cultural changefads and fashioninformational cascadeslocalized conformitymass behavior fragility
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.
1
Fads, fashion, custom, and broader cultural change can emerge as manifestations of informational-cascade dynamics.
2
Informational cascades explain localized conformity when individuals optimally follow preceding behavior despite possessing private information.
3
Mass behaviors generated by informational cascades are fragile because individuals may disregard their own information when following observed actions.

informational cascades in collective behavior

the formation of localized conformity and the fragility of mass behaviors through individuals following preceding actions while disregarding their own information

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1992-10-01
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Authors
Sushil Bikhchandani
David Hirshleifer
Ivo Welch
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