Information Cascading (opens in new tab)

Herd mentality meets game theory In my class on “Incentives in CS”, one of the most interesting concepts I came across was on information cascading. This post attempts to describe the concept by discussing improving iterations over a toy-example. We encounter many settings where individuals rely not just on their own observations but also on others’ decisions to make assessments. For instance, in the stock market, investors use public signals (e.g., others’ buying/selling behavior) to make de...