An availability cascade is a self-reinforcing cycle where repeated exposure to a piece of information—especially through media or social platforms—makes it seem more true or important than it actually is.

People begin to believe something not because of strong evidence, but because they keep hearing it again and again. In financial markets, this can influence decisions, create panic, or drive prices based on perception rather than reality.

A rumour spreads online that a private bank in India is facing liquidity issues. Social media posts, WhatsApp forwards, and videos keep repeating the same claim without verification.

As more people see the same message from different sources, it starts to feel credible. Even customers who have had no issues with the bank begin to worry.

Many rush to withdraw their deposits, not because of confirmed facts, but because the repeated exposure makes the rumour seem real. The fear grows simply because the same story keeps circulating.

• 1999 – Concept Introduced
The term “availability cascade” was introduced by Timur Kuran and Cass Sunstein to explain how repeated ideas can shape public belief.

• Application in Finance and Media
The concept has been widely used to explain market bubbles, panic selling, and rumor-driven movements where perception drives action.