Katie wanted to buy a new car. However, she could not decide on a model that suited her needs and was affordable at the same time. She finally decided to buy a Porsche when she learned that two of her colleagues have bought one, although its price exceeded the money she had saved for her car. Explain her behavior.
42) Why do individuals decide to herd?
43) What role does information cascade play in job interviews?
44) What role does the social networking websites play in creating confirmation bias among users?
45) You are participating in a reality show in which you and several other competitors have been taken to an unknown place and asked to find your way to a destination using a map. You were doing a good job until you reached a cross road. Confused which way to take, you decided to take the road that most of your competitors chose.
a)What is the term that is used to refer to such behavior?
b)Why do people often behave in this way?
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