B.E. For Dogs: Herding
B.E. for Dogs is a bi-weekly comic series that will examine concepts in behavioral economics from the perspective of our canine companions. Look out for new comics every other week!
The series is created by Matt Trower, Catherine Berman, and Jamie Foehl.
Herding: Ever notice how when one pup starts barking, nearby pups echo the call? Herding refers to acting based on what the crowd is doing (rather than acting based on relevant circumstances). Herding behavior is especially prevalent in the stock market. For example, if an investor sees that lots of people are selling a certain stock, the investor might sell that stock, even if that’s not a good long term-decision. Check out Bondt & Thaler’s paper to learn more.
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*Bondt, W. F., & Thaler, R. (1985). Does the stock market overreact?. The Journal of finance, 40(3), 793-805.
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ARTIST
Matt Trower
Matt is a comic artist and illustrator with a dog named Evan Williams. Originally from Seattle, they have held onto...
SENIOR BEHAVIORAL RESEARCHER
Catherine J. Berman
Catherine Berman's research at the Center spans preventive health behavior, purpose and meaning in life, mental health, and chronic disease management. Catherine graduated from...
SENIOR BEHAVIORAL RESEARCHER
Jamie Foehl
Jamie Foehl is a researcher at Duke University in Dan Ariely’s lab – The Center for Advanced Hindsight (CAH). Her...