The Blind Leading the Blind: Social Influence, Fads and Informational Cascades

THE NEW ECONOMICS OF HUMAN BEHAVIOUR, Ierulli, K. and Tommasi, M., eds., Ch.12, pp. 188-215, Cambridge University Press, 1995

Anderson Graduate School of Management, UCLA, Working Paper No. 24-93

35 Pages Posted: 5 Oct 2008 Last revised: 29 Sep 2009

See all articles by David A. Hirshleifer

David A. Hirshleifer

Marshall School of Business, USC; University of California, Irvine - Paul Merage School of Business; National Bureau of Economic Research (NBER)

Abstract

An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to hollow the behavior of the preceding person without regard to his own information. Among the phenomena that can be explained by informational cascades are conformism at specific times and places, error-prone behavior, and fragility of behaviors.

Suggested Citation

Hirshleifer, David A. and Hirshleifer, David A., The Blind Leading the Blind: Social Influence, Fads and Informational Cascades. THE NEW ECONOMICS OF HUMAN BEHAVIOUR, Ierulli, K. and Tommasi, M., eds., Ch.12, pp. 188-215, Cambridge University Press, 1995, Anderson Graduate School of Management, UCLA, Working Paper No. 24-93, Available at SSRN: https://ssrn.com/abstract=1278625

David A. Hirshleifer (Contact Author)

Marshall School of Business, USC ( email )

Marshall School of Business
Los Angeles, CA 90089
United States

University of California, Irvine - Paul Merage School of Business ( email )

Paul Merage School of Business
Irvine, CA California 92697-3125
United States

HOME PAGE: http://sites.uci.edu/dhirshle/

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
United States

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