If youve ever watched a nature show about herding animals, you may have seen what a stampede looks like, that sudden chaotic movement when a herd of animals panics and begins to break in every direction. Stampedes arent planned events, but they tend to affect the whole herd, and they can lead to fairly disastrous results such as animals injured or trapped. A stampede may also have positive results, like most of the animals escaping a predator, which thus protects the herds survival.
These unplanned incidents are called herd behavior, and the term has been applied to many aspects of human culture. Though we may think were individuals, groups of people may act in concert, especially in situations that leave little time for decision making. Like the herd stampeding, herd behavior in humans may have negative or positive consequences.
The term herd behavior as it applies to humans first appears in Dr. Wilfred Trotters 1914 book Instincts of the Herd in Peace and War. It wasnt exactly a new idea, though Trotter can be credited with the phrase. Sigmund Freud, for instance, extensively discusses his ideas of crowd psychology, and Carl Jung suggests that such psychology is the result of universal or collective unconscious.
You may see many examples of herd behavior in economics. For instance, if a few people begin to sell a certain type of stock, it may lead to a mass selling spree, and panic, and leave the market open to crashing. Similarly, you might look at the behavior in the retail environment on day after Thanksgiving sales. People have been injured in attempting to get to a special item offered at a very good price, when the doors of a store opens and the crowd stampedes in. Such stampedes have also occurred at rock concerts with open seating, where all people try to rush to get the closest seats to the front. These have occasionally had tragic results.
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