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The behavior behind following the pack

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When everyone's doing something, we assume there’s a good reason, and we follow along. But sometimes that gets us in trouble. Here, behavioral expert and professor Dan Gilbert explains why.

The Pulse of the Challenge Lab
A popular, highly publicized social media company is going public tomorrow. What do you do?
Buy it now
13%
Research
first
38%
Nothing
49%
Click on the options to make your guess.

EVERYBODY’S DOING IT

Following the group isn’t always the right thing to do. Especially when it comes to our investments.

THE AMAZING POWER OF PEER PRESSURE

Our desire to fit in with the group is so strong that it can make us change our behaviors. Even when we know that the group is wrong.

Did you know?

Our emotions can effect our financial decisions a lot more than we realize. It even happens at the movies.

Studies show that people are likely to spend more money after watching a sad movie than a happy one. Our emotions cloud our judgement and we make decisions we might not typically make. The same thing happens when we make financial decisions under stress.