 Definition of Herding instinct, herding behavior - Finance dictionary
|
Herding instinct, herding behavior ((See Chapter 15 of the Vernimmen))
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.
Herding instinct, herding behavior ((See Chapter 15 of the Vernimmen))
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
all terms in the dictionary of finance
|
|
|
|
You get more than just a glossary
on www.vernimmen.com:
- A monthly newsletter with over 60,000
subscribers
- 610,000 financial data for over 16,000
groups
- A 279-question quiz with answers
- A text book that has
sold 130,000 copies
- And all the rest |
To find other words in the
dictionary of finance, click on the first letter of the word you are looking
for:
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Definitions of terms begining
with the same letter as "Herding instinct, herding behavior"
:
Herding instinct, herding behavior ((See Chapter 15 of the Vernimmen))
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.
|
|