Post 6: Informational and Reputational Cascades

Informational and Reputational Cascades interplay a great deal with Digital Publishing. Cascades can infect any type of decision making process, and also can be seen through user's interactions with digital publishing as well. When creating a digital product, teams of producers must be aware of cascades in the creation process, and also must be aware of how their products (blogs, social networks,comment boxes) may add to (or help control) the problem of cascades.

Throughout Infotopia, Sunstein argues against deliberation as the only decision making process used in most situations today. Deliberation has its drawbacks. Informational influences and social pressures can often lead to group think, which can result in some very poor decisions. As an alternative to pure deliberation, Price systems can employ a large group of knowledgeable people to estimate on a certain topic, which can give surprisingly accurate information. However, cascades can invade both of these processes.

One of the biggest drawbacks to deliberation are reputational cascades. This occurs after a member (possibly a senior manager) puts forth a potentially bad idea. As more and more people comment positively on that idea, it becomes more and more difficult for a dissenting opinion to be expressed about the idea. Each new person that approves the idea strengthens it to the point where it may be disastrous to one's reputation to argue against it.

Informational cascades are similar but do not depend on one's protection of their own reputation to be propagated. Information cascades occur frequently in market systems as well as in any type of information that is spread quickly. Informational cascades occur when a erroneous fact is stated and repeated by others before it has the chance to be argued against or proven wrong. Sunstein discusses how a false statement on a blog or a fad in a market system can quickly gain traction and become a runaway train of lies and deceit (my words not his).

Both types of cascades can occur in traditional or new decision making processes, so no matter what system(s) are being used, any decision makers need to be aware of these two types of cascade pitfalls.