Status Updates From Copycats & Contrarians: Why...

For various reasons, psychological and social, experts may ‘herd’ together with other experts’ opinions. These may include fatigue in decision making, fear of loss of reputation. The contrarian expert may benefit from original views but the external benefit gained decreases with each subsequent expert joining

Entrepreneurs may be Mavericks but they are not rebels without a cause. They also look at social data and what other entrepreneurs are doing to decide on the future decisions for their business.

Social learning, reputation and beauty contests- reasons why speculators may just follow the herd in their buying decisions

Speculators are rational copycats 🤔 they pay exorbitant sums for what they gamble will likely make them exorbitant profits

Different kinds of Mavericks: inventors, rebels and whistleblowers. Yet is there really all there is?

The need for mavericks

Although we retain many of our evolutionary instincts for herding, our brains may have been vulcanised to give us some resilience to modern life, allowing us to moderate the power of our emotions across decision making domains

Our herding instincts may have its root in evolutionary biology

Not surprisingly, the brain is programmed to reward social behavior, or following the herd.

Just as you make up and influence the group, the group can also influence you. Mind the two horses, the noble steed and the ignoble one. Keep them in balance.

“The collective herd can build momentum without any individual member having to consider carefully what they’re joining and why.”

Bayesian information cascades- when information flows from the person just before you and everyone subsequently makes the same choice