Abstract
In the 1992 paper [1] 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.
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References
Bikhchandani, S., Hirshleifer, D., Welch, I.: A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades. Journal of Political Economy 100(5), 992–1026 (1992)
Rendsvig, R.K.: Aggregated Beliefs and Information Cascades (extended) (2013), http://vince-inc.com/rendsvig/papers/IC1.pdf
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Rendsvig, R.K. (2013). Aggregated Beliefs and Informational Cascades. In: Grossi, D., Roy, O., Huang, H. (eds) Logic, Rationality, and Interaction. LORI 2013. Lecture Notes in Computer Science, vol 8196. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40948-6_29
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DOI: https://doi.org/10.1007/978-3-642-40948-6_29
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