Discussion paper

DP3287 Informational Cascades and Decision to Migrate

We introduce the idea that informational cascades can explain the observed regularity that emigrants from the same locations also tend to choose the same foreign locations. Thus informational cascades generates herd behaviour. Herd behaviour is compared with the network externalities explanation of the same phenomenon. The relation between social tensions and herd behaviour is observed when local populations are xenophobic.

£6.00
Citation

Epstein, G (2002), ‘DP3287 Informational Cascades and Decision to Migrate‘, CEPR Discussion Paper No. 3287. CEPR Press, Paris & London. https://cepr.org/publications/dp3287