________ creates an informational equilibrium in which people trust the wisdom of others and ignore their own information.

Question

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Herding creates a situation where individuals rely on the actions and decisions of others instead of their own rational analysis. This leads to an informational equilibrium where people follow the crowd even if they have their doubts. As a result, new information or an alternative viewpoint is ignored or dismissed.

________ Creates an Informational Equilibrium in Which People Trust the Wisdom