Information Cascades in Banerjee (1992), Bikhchandani, Hirshleifer, and Welch (1992), and Welch (1992)

6 Pages Posted: 19 Apr 2024

See all articles by Ivo Welch

Ivo Welch

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

Date Written: March 31, 2024

Abstract

The early information cascades paper of Banerjee (1992) is more different from Bikhchandani, Hirshleifer, and Welch (1992) and Welch (1992) than it is similar. Discrete actions as the cause of herding are exclusive to the latter two. This very short note clarifies the three models with easy and quick examples.

Keywords: Information Cascades

JEL Classification: C7

Suggested Citation

Welch, Ivo, Information Cascades in Banerjee (1992), Bikhchandani, Hirshleifer, and Welch (1992), and Welch (1992) (March 31, 2024). Available at SSRN: https://ssrn.com/abstract=4779644 or http://dx.doi.org/10.2139/ssrn.4779644

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