When a Fad Ends:
نویسنده
چکیده
Throughout society there are instances of seemingly irrational imitative behavior, or fads. Everyone can identify a fad when they see one yet there is no comprehensive economic theory to explain their origins or demise. There are several theories that discuss why people replicate the choices of other agents in the economy, but none that are specific to the lifecycle of a fad. This paper is able to specify the conditions under which a fad develops. We present a model that analyzes the interaction of several types of agents in a complex market environment, from the initial product choice, through the period of peak popularity, to the eventual demise of the fad.
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