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Title: Information Cascades and Social Learning
Social learning is the updating of beliefs based on observation of others. Such observation can lead to efficient aggregation of information, but also to inaccurate decisions, fragility of mass behaviors, and, in the case of information cascades, to complete blockage of learning. We review the theory of information cascades and social learning and discuss important themes, insights, and applications of this literature as it has developed over the last 30 years. We also highlight open questions and promising directions for further theoretical and empirical exploration. (JEL D71, D82, D83, D91, Z13)  more » « less
Award ID(s):
1944153
PAR ID:
10625492
Author(s) / Creator(s):
; ; ;
Publisher / Repository:
American Economic Association
Date Published:
Journal Name:
Journal of Economic Literature
Volume:
62
Issue:
3
ISSN:
0022-0515
Page Range / eLocation ID:
1040 to 1093
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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