Aggregated Beliefs and Informational Cascades
In the 1992 paper  Bikchandani et al. show how it may be rational for Bayesian agents in a sequential decision making scenario to ignore their private information and conform to the choices made by previous agents. If this occurs, an agent ignoring her private information is said to be in a cascade.
KeywordsPrivate Information Transition Rule Kripke Model Epistemic Logic Sequential Decision
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- 2.Rendsvig, R.K.: Aggregated Beliefs and Information Cascades (extended) (2013), http://vince-inc.com/rendsvig/papers/IC1.pdf