This is a mental model which explores the tendency of individuals to conform to group behaviour, even when it contradicts personal beliefs or knowledge.
An information cascade occurs when people observe the actions of others and, despite their own private information, follow the behavior of the group or preceding individuals. This can result in groups of people making decisions based on limited or faulty information. An example could be the financial market, where people often follow trends and make investment decisions, ignoring their own analysis or intuition. This can lead to financial bubbles or irrational market behavior.
People are more likely to accept information as being true if others also believe it. This phenomenon is known as an information cascade - Michael Crichton
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