Information Cascade of “Meme Coins”
As new forms of investing have risen in recent years through cryptocurrencies and apps that make trading easier for the common person, such as Robinhood, we have seen a great deal of investing in “meme stocks” or “meme coins”. These are where many people band together to try to make the price of the stock […]
Physician shortage & Matching Market
Physicians in training play a huge role in the U.S. healthcare system. However, the Association of American Medical Colleges (AAMC) predict there will be a shortage of 40,000-100,000 physicians by 2030. This is because the number of newly trained physicians in the U.S. is determined by the number of residency positions available, not the number […]
Information Cascades in the Metaverse
In Chapter 16, we learned about information cascades. These are instances where people make decisions based off of what other people are doing. Some examples we talked about were looking up at the sky if a large crowd was looking up or even getting in a long line for a product you don’t know. In […]
Launch Strategy for Network Effect Products
With the increased prevalence of products whose success is influenced by the network effect, there has been growing interest in the link between launch strategy decisions and new product performance. Network effect is defined as a phenomenon in which the value of a product to its users increases as more people use the same good. […]
Information Cascades in Election Polls
Chapter 16 of the textbook notes that information cascades occur when people make decisions sequentially such that those people infer the private information that previous decisions makers have in order to make their decision. In the same way that an individual may decide to eat at a busy restaurant rather than an empty one, Nate […]
Information Cascades in the Automotive Industry
Information Cascades are prevalent in the general world. From the restaurant you choose to eat at to the clothes you choose to dress in, you could be making a decision based on an information cascade rather than your own private information. Specifically, the automotive industry is deeply entrenched in information cascades that arise through personal […]
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