An availability cascade is a self-reinforcing cycle that explains the development of certain kinds of collective beliefs. A novel idea or insight, usually one that seems to explain a complex process in a simple or straightforward manner, gains rapid currency in the popular discourse by its very simplicity and by its apparent insightfulness. Its rising popularity triggers a chain reaction within the social network: individuals adopt the new insight because other people within the network have adopted it, and on its face it seems plausible. The reason for this increased use and popularity of the new idea involves both the availability of the previously obscure term or idea, and the need of individuals using the term or idea to appear to be current with the stated beliefs and ideas of others, regardless of whether they in fact fully believe in the idea that they are expressing. Their need for social acceptance, and the apparent sophistication of the new insight, overwhelm their critical thinking.

The idea of the availability cascade was first developed by Timur Kuran

Timur Kuran

Timur Kuran is a Turkish economist, Professor of Economics and Political Science, and Gorter Family Professor in Islamic Studies at Duke University...

 and Cass Sunstein

Cass Sunstein

Cass R. Sunstein is an American legal scholar, particularly in the fields of constitutional law, administrative law, environmental law, and law and behavioral economics, who currently is the Administrator of the White House Office of Information and Regulatory Affairs in the Obama administration...

, building upon the concept of information cascades and on the availability bias as identified by Daniel Kahneman

Daniel Kahneman

Daniel Kahneman is an Israeli-American psychologist and Nobel laureate. He is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology....

 and Amos Tversky

Amos Tversky

Amos Nathan Tversky, was a cognitive and mathematical psychologist, a pioneer of cognitive science, a longtime collaborator of Daniel Kahneman, and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of measurement...

.

The concept has been highly influential in finance theory and regulatory research.

See also

• Availability bias
• Information cascade
• Reputation cascade
• Circular logic
• Groupthink
  Groupthink
  Groupthink is a psychological phenomenon that occurs within groups of people. It is the mode of thinking that happens when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives. Group members try to minimize conflict and reach a consensus decision without...
  
  
• The Emperor's New Clothes
  The Emperor's New Clothes
  "The Emperor's New Clothes" is a short tale by Hans Christian Andersen about two weavers who promise an Emperor a new suit of clothes that is invisible to those unfit for their positions, stupid, or incompetent...