One of the most important topics in the economic of information is the research about rational decision making by agents when they don’t have complete and prefect I information.
In this paper I am going to study the implication of that informational structure on decision making by agents.
I analyze a sequential decision making in which each decision maker look at the decision made by previous decision makers in taking her own decision. This is rational for her because other decision makers may have some information that is important for her. I then show that the decision rules that are chosen by optimizing individuals will be characterized by cascade behavior. Finally I show some applications.