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Rational herding

Rational herding refers to situations in which individuals converge on the same behaviour, belief or choice because doing so is the most reasonable response given the information and incentives available to them. In economics and finance, it is a situation in which market participants react to information about the behavior of other market agents or…

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Art, Herd behaviour in psychology & Explanations and mechanisms

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Overview

Herd behaviour in psychology

Explanations and mechanisms

Rational herding in financial contexts

Advanced semantic analysis

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Map overview Semantic statistics

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Rational herding

Nodes21
Edges20
Triples49
Avg. degree1.9
Density0.095238
Components1

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Rational herding

Top relations

related to Herd behaviour in psychology · 9
Rational herding → Asch's, Classic, Deutsch, Gerard, In, Rational, The, This, When
related to Related social-learning biases · 9
Rational herding → Confirmation, Gil-White, Henrich, In, Observers, Prestige, Success, These, Under
related to Explanations and mechanisms · 8
Rational herding → Cognitive, Evolutionary, Humans, Neuroimaging, Rational, Rules, When, With
related to Rational herding in financial contexts · 6
Rational herding → An, Due, Federal Reserve, Federal Reserve's, Rational, This
related to Implications · 3
Rational herding → In, Rational, Understanding
is a · 2
Rational herding → expected by-product of adaptive social learning strategies, unintended consequence of the string of Federal Reserve interventions that mandated greater transparency of others' trade activities starting in 2007

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Important terminology

rational herding information social behaviour learning others individuals people rather bias cognitive finance uncertainty copy evidence financial psychology economics also

Entity relationships Subject–Predicate–Object triples

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SubjectPredicateObjectConfidenceSrc
Rational herdingis aexpected by-product of adaptive social learning strategies0.90text
Rational herdingis aunintended consequence of the string of Federal Reserve interventions that mandated greater transparency of others' trade activities starting in 20070.90text
consumer trendsinstance ofIt is used to explain a variety of phenomena0.80text
voting behaviourinstance ofIt is used to explain a variety of phenomena0.80text
adoption of medical treatmentsinstance ofIt is used to explain a variety of phenomena0.80text
academic citation patternsinstance ofIt is used to explain a variety of phenomena0.80text
the spread of information onlineinstance ofIt is used to explain a variety of phenomena0.80text
information useinstance ofPsychological analyses typically treat rational herding as the product of normal cognitive and social processes0.80text
social learninginstance ofPsychological analyses typically treat rational herding as the product of normal cognitive and social processes0.80text
reputation management rather than a failure of reasoninginstance ofPsychological analyses typically treat rational herding as the product of normal cognitive and social processes0.80text
fund managersinstance ofProfessionals0.80text
analysts may rationally mimic peers because being wrong with the crowd is less damaging to one's career than being wrong aloneinstance ofProfessionals0.80text

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