Economics Herd Behavior Questions
Herd behavior influences the behavior of crowdfunding investors by creating a sense of social validation and conformity. When investors observe others participating in a crowdfunding campaign, they are more likely to follow suit and invest as well. This behavior is driven by the belief that if others are investing, it must be a good opportunity. Additionally, herd behavior can lead to a fear of missing out (FOMO), causing investors to join the crowd to avoid feeling left out. As a result, herd behavior can significantly impact the investment decisions of crowdfunding investors.