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Cyber Monday and Information Cascades

https://www.cbsnews.com/news/cyber-monday-sales-projected-to-top-6-6-billion-up-from-last-year/

Brick and mortar is becoming the new obsolete as online sales are becoming more and more popular. Many years ago, Black Friday was the headliner on every news article around the holiday season. In recent years, however, Cyber-Monday has dominated the headlines with the projected sales of up to $6.6 billion dollars.  This is about 16.5 percent more in sales from last year. Cyber Mondays’ popularity is an example of an information cascade. An information cascade is when an individual makes a decision or choice by observing the choices of others and ignoring his own personal information.

Customers did not always favor Cyber Monday. The term was coined by Ellen Davis in 2005 during the holiday season. 2005 marked the year where attention was brought to the start of an information cascade. In 2006, comScore reported that Cyber Monday sales jumped 25% to $608 million. But now 58 percent of Americans state that they plan on making an online purchase on Monday. These customers recognize that “deals today are just as good as they are on Black Friday” and they do not “have to wait in line with people would fight [them] for a TV.” Cyber Mondays currently demonstrate the power of e-commerce in our world today and their popularity from cascades. We can view the first significant Cyber Monday in 2005 as a strong cluster within the network of buyers and this density of buyers dramatically increasing from 2005 to present time.

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