Definition for : Herding instinct, herding behavior

The herding instinct is the desire to follow the crowd, i.e. the tendency of individuals to mould their thinking to the prevailing opinion. Similarly, economists call this decision-making process an Information cascade and believe that it happens in financial markets.For more, see behavioural finance.

(See Chapter 15 The financial markets of the Vernimmen)

To know more about it, look at what we have already written on this subject