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Analyst: Kindle Fire Pre-Orders Continue to Climb

http://www.pcmag.com/article2/0,2817,2396308,00.asp#fbid=J4dNhfIRquK
This article mostly just shows some statistics on how well the Kindle Fire is being sold during pre-order. However this is a great example of information cascade. The Kindle Fire, while no one even owns one yet, is being sold in great numbers, so clearly people are “following the crowd”, and basing their decision on what other people are doing instead of using their own information.
There is also another concept here regarding the continue to climb part of the pre-order of Kindle Fires. Since this product is still selling to more customers, then it has most likely entered an area of “upward pressure” on the consumption of the good, where the proportion of consumers is between the tipping point and the stable equilibrium point in the network effect. This means that Kindle Fires will continue to sell until the proportion of consumers that have bought the product have reached the stable equilibrium.

http://www.pcmag.com/article2/0,2817,2396308,00.asp#fbid=J4dNhfIRquK

This article mostly just shows some statistics on how well the Kindle Fire is being sold during pre-order. However this is a great example of information cascade. The Kindle Fire, while no one even owns one yet, is being sold in great numbers, so clearly people are “following the crowd”, and basing their decision on what other people are doing instead of using their own information, thus forming an information cascade.

There is also another concept here regarding the continue to climb part of the pre-order of Kindle Fires. Since this product is still selling to more customers, then it has most likely entered an area of “upward pressure” on the consumption of the good, where the proportion of consumers is between the tipping point and the stable equilibrium point in the network effect. This means that Kindle Fires will continue to sell until the proportion of consumers that have bought the product have reached the stable equilibrium.

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