Which of the following terms describes a phenomenon whereby individuals ignore their own information about the best course of action and instead simply do what everyone else is doing?
A)Relative performance
B)Absolute performance
C)Herding
D)Risk sharing
E)Pay-for-performance

Question

Quizplus · Accepted Answer

The phenomenon described is known as herding, where individuals follow the actions of the crowd rather than relying on their own information or analysis. Relative performance refers to evaluating one's performance based on comparison with others, absolute performance refers to individual performance without consideration for others, risk sharing refers to spreading risk among multiple parties, and pay-for-performance refers to incentivizing performance through financial rewards.

Which of the Following Terms Describes a Phenomenon Whereby Individuals