Th1.2: Influences of Other People Flashcards
1
Q
What does rationality assume?
A
people act individually to maximise their own benefits
2
Q
Why might someone buy something to ‘fit-in’?
A
because it is the social norm
3
Q
When does ‘herding behaviour’ occur?
A
when an individual copies the actions of a large group
4
Q
Where can herd behaviour be seen and what can this cause?
A
in the stock market, causing huge market bubbles
