Availability Cascades
The more a story is repeated, the more important it appears, in a self-reinforcing process. This can be illustrated as follows:
Information Cascades
social
This bias can be summed up as “maybe everyone else knows something I don’t” and it occurs when individuals follow the actions of others while ignoring their own information.
NoteExample
Crypto investing
Investing in a specific asset (e.g. crypto) because everyone else is. In reality, each new investor might be copying the previous wave of investors, who were themselves copying earlier waves.
Also relates to: Social Contagion · Communal Reinforcement · Hot Hand Fallacy · Extrapolation Bias · Greed and Fear