Information cascade
Also known as: informational cascade
An information cascade or informational cascade is a phenomenon described in behavioral economics and network theory in which a number of people make the same decision in a sequential fashion.
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mathematical model of herd behavior
An information cascade occurs when individuals make decisions based on the observations of others rather than their own private information, leading to a collective herd-like state.
social mechanism triggering speculative herd behavior
An information cascade occurs when individuals make decisions based on the observed actions of others rather than their own private information, often fueling speculative bubbles.