Year: 2022
Type: article
Abstract: Behavioral economics, unlike traditional economics, gives importance to human emotions at the point of decision-making. In other words, many economic theories assume that people behave rationally. However, empirical studies show that people do not act rationally. Behavioral economics acts by considering more than one factor while examining people's decisions with a multifaceted perspective. These factors are called cognitive biases. Herd behavior or herd psychology, which has many synonyms in the literature and is one of the cognitive biases, constitutes the starting point of the study. In short, it can be expressed as imitating individuals in another group. This imitation manifests itself in investment decisions in finance literature and in consumer purchasing behaviors in marketing literature. The aim of the research is to determine the level of interest of the synonyms "Herding Behaviour" and "Bandwagon Effect". In accordance with the purpose of the research, the Google Trends dataset, which is the statistical service tool provided by Google for content, was used to examine the level of interest. Within the scope of the purpose, the relevant notions were analyzed in the sub-categories of “Finance” and “Advertising and Marketing” and the 2020-2021 periods in the USA were comparatively analyzed. Within the scope of the findings, it was deduced that herd behavior or herd psychology (Herding Behaviour and Bandwagon Effect), which means the same thing in Turkish, take on the quality of a “cult” concept in different fields.
Source: DergiPark (Istanbul University)
Authors: Konak, Fatih, Civek, Funda, Özkahveci, Esra
Institution: Hitit Üniversitesi
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4308633500