Information Cascade

Look deeper into the concept of a “information cascade.” Can you cite an example of where following the actions of others was a sound idea? Where doing so ended up being a poor choice?

The phenomenon, information cascade happens when people observe the actions of other individuals and then rationally make the same choice that others have made. A good example of an information cascade would the 1989, protests in Leipzig, Germany. Protestors would conduct weekly meetings, in which the number of attendees grew rapidly. After reaching over 400,000 members the protestors marched the streets of Leipzig, until the Berlin Wall collapsed (162). The Tiananmen Square Massacre in China represents bad example of an information cascade. The protests lacked a definite cause, and leadership that resulted in Hu Yaobang and an unknown number of other deaths.

I pledge - KES