There is a notion of an “information cascade”, which I think is relevant to this question.
As I understand it If individuals have private information (individual impressions), and also observe other individuals’ public actions (beliefs), then it is possible that the group “cascades” to a worse result than one might at first expect.
I don’t understand the idea well, my summary may be inaccurate or clumsy.
There is a notion of an “information cascade”, which I think is relevant to this question.
As I understand it If individuals have private information (individual impressions), and also observe other individuals’ public actions (beliefs), then it is possible that the group “cascades” to a worse result than one might at first expect.
I don’t understand the idea well, my summary may be inaccurate or clumsy.