Behavioral Finance: Herd Mentality (2008-08-11)

by David John Marotta

One of the early studies on herd mentality was the Solomon Asch experiments in the 1950s. The setup was a mock vision test. In reality, all but one of the participants were actors, who after a few correct answers started agreeing unanimously on a wrong choice.

Read the complete column at http://www.emarotta.com/article.php?ID=296