What is an informational cascade?
A. An excess flow of market information that makes it difficult for an investor to form a rational decision.
B. A continual decline in the quality of market information from public sources due to sequential budget cuts.
C. A continual increase in the quality of market information from public sources due to broader use of the internet by market participants.
D. A sequence of decisions based on the actions of others rather than fundamental information.
Answer:D
What is an informational cascade?
A. An excess flow of market information that makes it difficult for an investor to form a rational decision. B. A continual decline in the quality of market information from public sources due to sequential budget cuts. C. A continual increase in the quality of market information from public sources due to broader use of the internet by market participants. D. A sequence of decisions based on the actions of others rather than fundamental information.