Information Cascades and Social Learning

An information cascade is a situation in which an agent who observes others chooses the same action irrespective of value agent’s private signal. Theoretical models have found that cascades result poor aggregation, inaccurate decisions, and fragility mass behaviors. We review theory social learning. Our goal to describe relatively integrated accessible way more important themes, insights applications literature as it has developed over last thirty years. also highlight open questions promising directions for further theoretical empirical exploration.