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Herd Instinct

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
Herd Instinct
A sociological phenomenon in which everyone does what everyone else seems to be doing. In investing, the herd instinct is seen most commonly in panic sells and rallies that occur without regard for broader indicators. That is, regardless of the sustainability of a rally or the overreaction of the sell-off, the concept of a herd instinct suggests that traders will continue to follow the trend until contrary evidence becomes overwhelming (or simply until they calm down). See also: Behavioral economics, Crowd.


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The herd instinct was a prime factor in the 2000 to 2001 "tech wreck," the 1929 stock market crash and the Mexican currency crises of 1982 and 1984.
But in fact are our YA books moral imperatives, urging personal responsibility upon readers locked in place by the herd instinct of an omnipotent peer group?
The herd instinct and the lack of overseas investment opportunities in the 1980s caused developers to create a patchwork of shoddy, half-empty suburban malls.
 
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