a psychological phenomenon that occurs
within a group of people, in which the desire
for harmony or conformity results in
an incorrect decision-making outcome.
Leads to loss of individual creativity,
uniqueness and independent thinking.
Produces an "illusion of invulnerability"
and significantly overrates the the group’s
abilities in decision-making,
and significantly underrates the abilities
of their opponents
An information cascade occurs
when people observe the actions
of others and then make
the same choice, independently
of their own private informations.
Conditions of occurence
Decisions are made sequentially
Decisions are made rationally based on
the information available to each actor
Each node do not have access to the
information of other nodes
Action space is limited (yes/no/like/...)
Low Weak link/Strong link ratio
Homogeneity of information sources
Homogeneity of position within network
People doing certain things because other
people are doing it, regardless of their own
beliefs, which they may ignore or override.
The perceived "popularity" of something
may have an effect on how it is viewed.