Rational Conformity in Sequential Decision-making: an Experiment of Information Cascades

Information cascade is a rational conformity behavior which economizing the paper addressed is a type of evolutionary mental cost of agents This an experimental evidence of information cascades with six experiments employing 2 x2 x2 treatments in Tianjin. Results show. information cascades reversed less in the asymmetry setting; professional subjects are not employ Bayes rule more frequently than student subjects, and decision accuracy of professional subjects is not higher than that of student subjects, decision accuracy is independent of the order of decision-making, the consistency between private information of current agent and decision result of first agent in same group plays an important role on her behavior and decision accuracy, The accumulative gain/loss and gender of the agent are independent of her behavior, since the mental cost is discount relative to the decision cost in the loss domain, agents will increase the devotion of the mental.