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Herding bias can be injurious to financial health

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Journal of Consumer Research called ‘Social Defaults: Observed Choices Become Choice Defaults’ suggests that we are prone to being copycats.

Participants were asked to choose products. Rather than spending time learning about the product or asking questions, they simply mimicked the choices of the crowd.

This phenomenon is also known as herding bias.Herding bias is common mainly because as human beings, we have a natural desire of being a part of the herd.

Staying in numbers makes us feel safe. Following the crowd has helped us survive. During the Stone Age, if we saw a group of people running away from something, it would be a good idea to join the group and run with them, rather than explore the reason for their flight.

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COVID-19
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United States
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Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
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Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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Covid-19.rehab - the latest news concerning the spread of the SARS-CoV-2 coronavirus (formerly 2019-nCoV), as well as the infectious disease that it causes COVID-19, in separate countries and in the world as a whole. Current news on the topic of coronavirus SARS-CoV-2. Quarantine, pandemic 2020, epidemic: what is it, when will it come to end, precautions and how to protect yourself from this disease. The most honest news, no fakes! To keep up with the latest news, stay tuned for updates on the site! Every day we will collect news and statistics on coronavirus from around the world for you to be aware of this topic.

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