Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades
Journal of Economic Perspectives, Vol. 12, No. 3, pp. 151-70, Summer 1998
Posted: 1 Dec 2008
Abstract
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior.
Suggested Citation: Suggested Citation
Bikhchandani, Sushil and Hirshleifer, David A. and Welch, Ivo, Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades. Journal of Economic Perspectives, Vol. 12, No. 3, pp. 151-70, Summer 1998, Available at SSRN: https://ssrn.com/abstract=1288968
David A. Hirshleifer (Contact Author)
Marshall School of Business, USC ( email )
Marshall School of Business
Los Angeles, CA 90089
United States
HOME PAGE: http://https://sites.uci.edu/dhirshle/
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