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"Herd theory," or more commonly known as herd mentality, describes the phenomenon where individuals in a group make decisions based on the actions of others rather than their own independent judgment. This can lead to both positive and negative outcomes, such as quick decision-making in a crisis, but also the spread of misinformation or participation in stock market bubbles. This behavior is driven by factors like fear, uncertainty, a desire to fit in, or the assumption that others are better in
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