Information Cascades and Social Learning

Sushil Bikhchandani, David Hirshleifer, Omer Tamuz and Ivo Welch

May 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.

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