Herd Behavior

Abstract

Abstract There are many manifestations of herding in the human species—one of the most socially interdependent species on the earth. Herding here refers to an alignment of thoughts or behaviors of individuals in a group through local interactions among individuals rather through than some purposeful coordination by a central authority in the group. Herding underlies many collective phenomena in the Internet era, ranging from everyday social behavior, consumer choices, economic bubbles, and political movements. Accumulating evidence in various behavioral science disciplines suggests that we humans are equipped with neural, psychological, and behavioral mechanisms that constitute our highly socially sensitive minds. These built‐in mechanisms are evolutionary products that have promoted our survival. Yet, these adaptive tools can cause serious errors in modern environments, in which interconnectivities of individuals are much denser and externalities accruing from individual behaviors are much greater and more far‐reaching, compared to primordial environments in which the human mind evolved. Growing evidence in the behavioral sciences also suggests that the two contrasting collective phenomena in humans, maladaptive herding and the wisdom of crowds, are based on similar underlying mechanisms. In this sense, the two apparently opposite macro phenomena may be seen as twins produced and governed by the social receptivity of our minds. Given this commonality, understanding the neural, psychological, and behavioral mechanisms that could distinguish these twins will be one of the most important challenges for behavioral sciences in the next decade.