Bayesian Social Learning & Information Cascades

N=30 agents decide sequentially. Each observes predecessors' choices and gets a private signal. Once a cascade starts, rational agents ignore their private signal and copy the crowd — even if the crowd is wrong.

Signal quality p: 0.70 N agents: 30

True state: —

Cascade start: —

Cascade correct: —

Green=correct, Red=wrong
Circle=followed signal
Square=herd (cascade)