The Korean Journal of Economic Studies
An Experimental Study on Factors Affecting Herd Behavior
Namhoon Kwon (Konkuk University), Youan Kwon (Konkuk University), Daehwan Kim (Konkuk University), Kyusang Yu (Konkuk University)Year 2016Vol. 64No. 3
Using experimental methodology, this paper explores how personality traitaffects individuals’ propensity to herd. Behavioral experiments show thatherding behavior is related to personality traits such as extraversion, lowself-esteem, and low likelihood of making mistakes during experiments. Someindicators of political orientation is also related. These findings suggest thatherd behavior is a consequence of individuals adopting heuristics in decisionmaking process, and that rationality based theory alone.such as informationcascade theory.cannot provide satisfactory explanation.