Editing Bandwagon effect (section)

====Microeconomics====
{{See also|Network effect|Veblen good}}
In [[microeconomics]], bandwagon effects may play out in interactions of demand and preference.<ref name="harvey">{{cite journal |author-link= Harvey Leibenstein |first= Harvey |last= Leibenstein |title= Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand |journal= [[Quarterly Journal of Economics]] |year= 1950 |volume= 64 |issue= 2 |pages= 183–207 |doi= 10.2307/1882692 |jstor= 1882692 }}</ref> The bandwagon effect arises when people's preference for a commodity increases as the number of people buying it increases. Consumers may choose their product based on others' preferences believing that it is the superior product. This selection choice can be a result of directly observing the purchase choice of others or by observing the scarcity of a product compared to its competition as a result of the choice previous consumers have made. This scenario can also be seen in restaurants where the number of customers in a restaurant can persuade potential diners to eat there based on the perception that the food must be better than the competition due to its popularity.<ref name=":0" /> This interaction potentially disturbs the normal results of the theory of [[supply and demand]], which assumes that consumers make buying decisions exclusively based on price and their own personal preference.<ref name=":3" />