Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades

Journal of Economic Perspectives

Volumn 12, Issue 3, 1998, Pages 151-170

  Bikhchandani, Sushil ^a   Hirshleifer, David ^b   Welch, Ivo ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF MICHIGAN   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0001015501     PISSN: 08953309     EISSN: None     Source Type: Journal    
DOI: 10.1257/jep.12.3.151     Document Type: Article

References (50)

1. Anderson, Lisa, and Charles Holt, "Information Cascades in the Laboratory," American Economic Review, 1997, 87, 847-62.
2. Anderson, Lisa, and Charles Holt, "Classroom Games: Information Cascades," Journal of Economic Perspectives, Fall 1996, 10:4, 187-93.
3. Arthur, Bryan, "Competing Technologies, Increasing Returns, and Lock-in by Historical Events," The Economic Journal, 1989, 99, 116-31.
4. Bak, Per, and Chen, Kan, "Self-Organized Criticality," Scientific American, January 1991, 264:1, 46-53.
5. Bandura, Albert, Aggression: A Social Learning Analysis. Englewood Cliffs, NJ: Prentice-Hall, 1973.
6. Banerjee, Abhijit, "A Simple Model of Herd Behavior," Quarterly Journal of Economics, 1992, 107, 797-818.
7. Banerjee, Abhijit, and Drew Fudenberg, "Word of Mouth Learning," working paper, MIT, 1995.
8. Berkowitz, Leonard, "Studies of the Contagion of Violence." In Herbert Hirsch and David C. Perry, eds., Violence as Politics: A Series of Original Essays. New York: Harper & Row, 1973.
9. Bernardo, Anthony, and Ivo Welch, "A Theory of Overconfidence and Entrepreneurship," working paper, UCLA Anderson School, 1997.
10. Bikhchandani, Sushil, David Hirshleifer, and Ivo Welch, "A Theory of Fads, Fashion, Custom and Cultural Change as Informational Cascades," Journal of Political Economy, 1992, 100, 992-1026.
11. Cao, Henry, and David Hirshleifer, "Limited Observability, Reporting Biases, and Informational Cascades," working paper, University of Michigan, 1997a.
12. Cao, Henry, and David Hirshleifer, "Word of Mouth Learning and Informational Cascades," working paper, University of Michigan, 1997b.
13. Caplin, Andrew, and John Leahy, "Business as Usual, Market Crashes, and Wisdom after the Fact," American Economic Review, 1994, 84, 548-65.
14. Chamley, Christophe, and Douglas Gale, "Information Revelation and Strategic Delay in Irreversible Decisions," Econometrica, 1994, 62, 1065-85.
15. Chaudhuri, Shubham, Jith Jayartne, and Angela Chang, "Informational Externalities and the Branch Location Decisions of Banks: An Empirical Analysis," working paper, Columbia University, 1997.
16. Choi, Jay Pil, "Herd Behavior, the 'Penguin Effect', and Suppression of Information Diffusion: An Analysis of Informational Externalities and Payoff Interdependency," Rand Journal of Economics, 1997, 28, 407-25.
17. "Did Dirty Tricks Create a Best-Seller?" Business Week, August 7, 1995, 22.
18. Dilulio, John J., "Help Wanted, Economics, Crime and Public Policy," Journal of Economic Perspectives, Winter 1996, 10:1, 3-25.
19. Gibson, Robert M., and Jacob Hoglund, "Copying and Sexual Selection," TREE, July 1992, 7:7, 229-32.
20. Gilbert, R. J., and Marvin Lieberman, "Investment and Coordination in Oligopolistic Industries," Rand Journal of Economics, 1987, 18, 17-33.
21. Glaeser, Edward, Bruce Sacerdote, and Jose Scheinkman, "Crime and Social Interactions," Quarterly Journal of Economics, 1996, 111, 507-48.
22. Gul, Faruk, and Russell Lundholm, "Endogenous Timing and the Clustering of Agents' Decisions," Journal of Political Economy, 1995, 103, 1039-66.
23. Hendricks, Kenneth, and Dan Koveneck, "Asymmetric Information, Information Externalities, and Efficiency: The Case of Oil Exploration," Rand Journal of Economics, 1989, 20, 164-82.
24. Hirshleifer, David, and Noah, Robert, "Misfits and Social Progress," working paper, University of Michigan, 1997.
25. Hoffer, Eric, The Passionate State of Mind, aphorism 33. New York: Harper, 1955.
26. Huff, C. Ronald, "Denial, Overreaction, and Misidentification: A Postscript on Public Policy." In C. Ronald Huff, ed., Gangs in America, Newbury Park, CA: Sage Publications, 1990.
27. Kahan, Marcel, "Social Influence, Social Meaning, and Deterrence," Virginia Law Review, 1997, 83, 276-304.
28. Kennedy, Robert E., "Strategy Fads and Strategic Positioning: An Empirical Test for Herd Behavior in Prime-Time Television Programming," Harvard Business School, Division of Research, Working Paper, 1997.
29. Khanna, Noreen, "Optimal Contracting with Moral Hazard and Cascading," Review of Financial Studies, 1998, 11, 557-94.
30. Klein, Daniel B., and John Majewski, "Plank Road Fever as Informational Cascade: The Importance of Revelation," working paper, University of California, Irvine, 1996.
31. Kuran, Timur, "Sparks and Prairie Fires: A Theory of Unanticipated Political Revolution," Public Choice, 1989, 61, 41-74.
32. Landes, William, "An Economic Study of U.S. Aircraft Hijacking, 1961-76," Journal of Law and Economics, 1978, 21, 1-32.
33. Lee, In Ho, "On the Convergence of Informational Cascades," Journal of Economic Theory, 1993, 61, 396-411.
34. Lohmann, Susanne, "The Dynamics of Informational Cascades: The Monday Demonstrations in Leipzig, East Germany, 1989-91," World Politics, 1994, 47, 42-101.
35. Machiavelli, Niccolo, The Prince (1514). Quentin Kinner and Russel Price, ed., Cambridge: Cambridge University Press, 1988.
36. Miller, Walter B., "Why the United States Has Failed to Solve Its Youth Gang Problem." In C. Ronald Huff, ed., Gangs in America. Newbury Park, CA: Sage Publication, 1990.
37. "The New Hucksterism: Stealth Ads Creep into a Culture Saturated with Logos and Pitches," Business Week, July 1, 1996, 76f.
38. Office of Juvenile Justice and Delinquency Prevention, Department of Justice, "Gang Suppression and Intervention: Problem and Response," October 1994.
39. Perktold, Josef, "Recurring Informational Cascades," working paper, University of Chicago, 1996.
40. Phelps, Charles E., and Cathleen Mooney, "Variations in Medical Practice Use: Causes and Consequences." In Arnold Richard, Robert Rich, and William White, eds., Competitive Approaches to Health Care Reform, Washington D.C., Urban Institute, 1993, ch. 7, 140-78.
41. Robin, Eugene D., Matters of Life and Death: Risks vs. Benefits of Medical Care. New York: Freeman and Co., 1984.
42. Rogers, Everett M., Diffusion of Innovation, 3rd Edition. New York: Free Press, Macmillan Publishers, 1983.
43. Shefrin, Steven M., and Robert K. Triest, "Can Brute Deterrence Backfire? Perceptions and Attitudes in Taxpayer Compliance." In Joel Slemrod, ed., Why People Pay Taxes, 1992, 193-218.
44. Skogan, Wesley G., Disorder and Decline: Crime and the Spiral of Decay in American Neighborhoods, New York: Free Press, 1990.
45. Smith, Lones, and Peter Sorenson, "Pathological Outcomes of Observational Learning," working paper, MIT, 1995.
46. "A Star is Reborn," Business Week, July 8, 1996, 102-6.
47. Taylor, Richard, Medicine Out of Control: The Anatomy of a Malignant Technology. Melbourne: Sun Books, 1979.
48. Welch, Ivo, "Sequential Sales, Learning and Cascades," The Journal of Finance, 1992, 47, 695-732.
49. Vives, Xavier, "How Fast Do Rational Agents Learn?" Review of Economic Studies, 1993, 60, 329-47.
50. Zhang, Jianbo, "Strategic Delay and the Onset of Investment Cascades," Rand Journal of Economics, 1997, 28, 188-205.