Information Cascade
Updated 2026-08-08
INTRODUCTION
English translation pending.
CORE DEFINITION
In an information cascade, individuals deciding in sequence observe the actions of those before them and reasonably conclude that the earlier actors had reasons for their choices, so they set aside their own private signal and imitate. The behavior is individually rational but produces a chain based on very little evidence, which can persist even when later private information contradicts it. Because the cascade rests on thin foundations, it can also collapse suddenly.
SCAFFOLDING EFFECT
Reduce cognitive load
- Identify the anchor: ask which early action the rest of the chain is following. - Surface private signals: collect independent judgments before anyone sees the others. - Break the run: introduce contradictory information deliberately to test whether the cascade holds.
Anchor fast decisions
Each actor infers information from the actions of predecessors rather than from their reasons, so the actions aggregate more confidence than the underlying evidence warrants. Once enough people have chosen, the inferred signal outweighs any individual's private information, and imitation continues regardless of what later actors know. The chain looks informative while resting on almost nothing.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Information_cascadeverified
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