Herd Behavior:

Herd Behavior:

Herd behavior refers to the tendency of individuals to mimic the actions of a larger group, often ignoring their own personal beliefs or information. This phenomenon is commonly observed in humans and animals and is driven by the assumption that the group collectively knows something the individual does not.

Key Characteristics of Herd Behavior:
Group Imitation: People follow the crowd, even when it may lead to irrational or suboptimal decisions.

Loss of Individual Judgment: Personal critical thinking is often overridden by group influence.

Rapid Spread: Behaviors or ideas can spread quickly, like a social contagion.

Fear of Missing Out (FOMO): People often follow the herd to avoid being left out or making the wrong choice alone.

Examples:
Stock Market: Investors buy or sell stocks en masse, leading to bubbles or crashes.
Panic Buying: During crises (e.g., pandemics), people hoard supplies because others are doing so.
Fashion Trends: People adopt certain styles just because many others are doing it.
Online Virality: Videos, memes, or challenges gain popularity rapidly because they are widely shared.
In Psychology and Behavioral Economics:
Herd behavior is studied under cognitive biases and social influence theories. It shows how decision-making is often more social than rational.

Shervan K Shahhian