Herd Behaviour happens when individuals copy the actions of others, often ignoring their own knowledge or logic. Herd Behaviour challenges the classical assumption of rational consumer choice. It explains rapid shifts in demand, fashion fads, and even market distortions.

🐑 Herd Behaviour – Summary:

Herd behaviour is when people copy what others are doing — not because it’s right, but because everyone else is doing it. It’s driven by peer pressure, FOMO, and uncertainty.

In economics, herding explains irrational trends like market bubbles, fashion fads, and even bank runs. It shows how emotions and social influence can override logic — challenging the idea that people always act rationally.

Sometimes, the crowd is wrong… but we follow anyway.