Decision-making Neuroscience-based Research on Stock Herd and Anti-herd Behavior

Abstract

The purpose of this paper was to help investors understand the nature of the current situation of financial market so as to make correct investment decisions. The methodology adopted was mainly applying decision-making neuroscience to study the neural mechanisms behind the two types of informational herding decisions and their mechanisms. Results showed that under the condition that the net flow of funds was positive, the act of choosing to purchase stocks can be considered as a herd behavior, and the opposite behavior can be considered as an anti-herd behavior. A conclusion can be drawn that individuals' perception and assessment of information about other people's behaviors, attitudes, or evaluations influence the behavior of individuals during the decision-making stage.