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Information Cascades and Social Learning

133 Pages Posted: 24 May 2021

See all articles by Sushil Bikhchandani

Sushil Bikhchandani

University of California, Los Angeles - Anderson School of Management

David A. Hirshleifer

Marshall School of Business, USC; National Bureau of Economic Research (NBER)

Omer Tamuz

California Institute of Technology - Division of the Humanities and Social Sciences

Ivo Welch

University of California, Los Angeles (UCLA); National Bureau of Economic Research (NBER)

There are 2 versions of this paper

Date Written: May 23, 2021

Abstract

We review the theory of information cascades and social learning. Our goal is to describe in a relatively integrated and accessible way the more important themes, insights and applications of the literature as it has developed over the last thirty years. We also highlight open questions and promising directions for further theoretical and empirical exploration.

Keywords: Information Cascades, Social Learning, Herding, Fads, Fashion, Conformity, Culture

JEL Classification: D8, D7, D9

Suggested Citation: Suggested Citation

Bikhchandani, Sushil and Hirshleifer, David A. and Tamuz, Omer and Welch, Ivo, Information Cascades and Social Learning (May 23, 2021). Available at SSRN: https://ssrn.com/abstract=3851678 or http://dx.doi.org/10.2139/ssrn.3851678

Sushil Bikhchandani

University of California, Los Angeles - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095
United States
310-206-2686 (Phone)
310-825-1581 (Fax)

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/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Omer Tamuz

California Institute of Technology - Division of the Humanities and Social Sciences ( email )

1200 East California Blvd.
Pasadena, CA 91125
United States

Ivo Welch

University of California, Los Angeles (UCLA) ( email )

110 Westwood Plaza
C519
Los Angeles, CA 90095-1481
United States
310-825-2508 (Phone)

HOME PAGE: http://www.ivo-welch.info

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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