In the context of the financial market, this refers to market participants who base their behavior on the decisions of others who they assume have a better level of information than themselves (imitating others because they supposedly know more; it constitutes a rational response to a problem of dissemination of information, provided the proportion of imitators in the group is not too high). In this way, a self-reinforcing movement in the financial market can easily occur. – See euphoria phase, exotikomania, financial psychology, fear thesis, counter-speculation theory, herd behavior, hindsight, information, asymmetric, myopia, milkmaid bull market, odd lot theory, feedback loop, sine curve fetishism, staggering, trend trading, payday ground rule.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/