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Social Learning

Information cascades: Agents make sequential choices by observing predecessors. Even when private information says otherwise, social influence can create cascades toward suboptimal outcomes.

Choice A
0
Choice B
0
Correct
0%
Cascade
No

How It Works

Each agent receives a private signal about the true quality and observes previous choices:

Green: Chose correctly
Orange: Chose incorrectly
Gray: Waiting to decide

High social weight → Cascades can form quickly, even against true quality!