Cognitive Bias in Economic Decision Making: The Influence of Herding Behaviour of Consumers on Business and Investment

Herding behaviour in economic decision-making refers to the tendency of individuals to follow the actions or decisions of a larger group, often disregarding their own independent analysis or judgment. Herd behaviour is a double-edged sword. While it can generate quick wins for businesses, it requires careful planning and consideration to avoid the risks associated with over-dependence on trends and external influences.