• Corpus ID: 251953526

The Emergence of Fads in a Changing World

  title={The Emergence of Fads in a Changing World},
  author={Wanying Huang},
. We study how fads emerge from social learning in a changing environment. We consider a sequential learning model in which rational agents arrive in order, each acting only once, and the underlying unknown state is constantly evolving. Each agent receives a private signal, observes all past actions of others, and chooses an action to match the current state. Since the state changes over time, cascades cannot last forever, and actions fluctuate too. We show that in the long run, actions change… 

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