Herd Behavior and Investment

摘要: This paper examines some of the forces that can lead to herd behavior in investment. Under certain circumstances, managers simply mimic investment decisions other managers, ignoring substantive private information. Although this is inefficient from a social standpoint, it be rational perspective who are concerned about their reputations labor market. We discuss applications model corporate investment, stock market, and decision making within firms. (JEL 026, 522) A basic tenet classical economic theory reflect agents' rationally formed expectations; made using all available information an efficient manner. contrasting view also driven by group psychology, which weakens link between market outcomes. In The General Theory, John Maynard Keynes (1936, pp. 157-58) expresses skepticism ability inclination "long-term investors" buck trends ensure his view, investors may reluctant act according own beliefs, fearing contrarian will damage as sensible makers: