Comments on: On Information Cascades and Lemmings http://alephblog.com/2008/03/04/on-information-cascades-and-lemmings/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 22:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BriGhttp://alephblog.com/2008/03/04/on-information-cascades-and-lemmings/comment-page-1/#comment-17137 BriG Tue, 04 Mar 2008 17:56:57 +0000 http://alephblog.com/2008/03/04/on-information-cascades-and-lemmings/#comment-17137 "What is meant by information cascades is a sudden acknowledgment of things that were obvious, but ignored, because economic actors decided to follow the crowd" That doesn't seem to match up with Wikipedia's def. "an information cascade or informational cascade is a situation in which every subsequent actor, based on the observations of others, makes the same choice independent of his/her private signal" Which is a fancy way of saying most people follow the herd. “What is meant by information cascades is a sudden acknowledgment of things that were obvious, but ignored, because economic actors decided to follow the crowd”

That doesn’t seem to match up with Wikipedia’s def. “an information cascade or informational cascade is a situation in which every subsequent actor, based on the observations of others, makes the same choice independent of his/her private signal”

Which is a fancy way of saying most people follow the herd.

]]> By: q1http://alephblog.com/2008/03/04/on-information-cascades-and-lemmings/comment-page-1/#comment-17134 q1 Tue, 04 Mar 2008 10:46:13 +0000 http://alephblog.com/2008/03/04/on-information-cascades-and-lemmings/#comment-17134 very well stated. There's such a reluctance to take on Schiller, undoubtedly because his forecasts have been so accurate. But I too found it quite difficult to buy into his "information cascades" argument. Thanks, as always, for posting! very well stated. There’s such a reluctance to take on Schiller, undoubtedly because his forecasts have been so accurate. But I too found it quite difficult to buy into his “information cascades” argument. Thanks, as always, for posting!

]]>