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Availability cascade

Explanation for types of collective belief

  • 11 min read
  • 5 chapters

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Through Risk, News media and Social network

The idea of the availability cascade was first developed by Timur Kuran and Cass Sunstein as a variation of information cascades mediated by the availability heuristic, with the addition of reputational cascades. The availability cascade concept has been highly influential in finance theory and regulatory research, particular with respect to assessing and regulating risk.

Cascade elements

Availability cascades occur in a society via public discourse (e.g. the public sphere and the news media) or over social networks—sets of linked actors in one or more of several roles. These actors process incoming information to form their private beliefs according to various rules, both rational and semi-rational. The semi-rational rules include the heuristics, in particular the availability heuristic. The actors then behave and express their public beliefs according to self-interest, which might cause their publicly expressed beliefs to deviate from their privately held beliefs.

Kuran and Sunstein emphasize the role of availability entrepreneurs, agents willing to invest resources into promoting a belief in order to derive some personal benefit. Other availability entrepreneurs with opposing interests may wage availability counter-campaigns. Other key roles include journalists and politicians, both of which are subject to economic and reputational pressures, the former in competition in the media, the latter for political status. As resources (e.g. attention and money) are limited, beliefs compete with one another in the "availability market". A given incident and subsequent availability campaign may succeed in raising the availability of one issue at the expense of other issues.

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