A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades

19921,763 citationsJournal Articlegreen Open Access

Authors

Sushil Bikhchandani · University of California, Los Angeles

David Hirshleifer · National Bureau of Economic Research

Ivo Welch · National Bureau of Economic Research

Abstract

An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information.We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades.

Topics & Keywords

Language and cultural evolution Evolutionary Game Theory and Cooperation Social and Cultural Dynamics

UN Sustainable Development Goals

Reduced inequalities

Publication Details

Published in: Journal of Political Economy

Volume 100, Issue 5, pp. 992-1026

DOI: 10.1086/261849

Field-Weighted Citation Impact: 28.29