Informaton cascade / social contagion
People looked at what was happening around them, assumed that house prices would continue to increase over time, and based their decisions on unrealistic projections.
Immediately related elementsHow this works
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The Global Financial Crisis Â»The Global Financial Crisis
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Long-term causes of the financial crisis? Â»Long-term causes of the financial crisis?
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Unintended consequences of earlier public policy choices Â»Unintended consequences of earlier public policy choices
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Regulatory changes encouraged home ownership Â»Regulatory changes encouraged home ownership
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House price bubble in the US Â»House price bubble in the US
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Rising house prices encouraged speculation on house prices Â»Rising house prices encouraged speculation on house prices
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Informaton cascade / social contagion
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Fuelled by media coverage of rising house prices Â»Fuelled by media coverage of rising house prices
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Information cascade Â»Information cascade
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