herding events

Herding events occur when individuals in a group follow the actions of others, often leading to a mass movement or trend. This behavior is driven by the belief that the collective choice is more likely to be correct or beneficial, even if it isn't based on individual analysis. Examples include financial market bubbles, where investors buy or sell based on others’ actions rather than fundamentals, or viral social trends. Herding can amplify swings and decisions, sometimes causing instability or irrational outcomes in markets, social movements, or consumer behavior.