The science of ‘herd mentality’ | Your Brain on Money EP.01 | Big Think

The science of ‘herd mentality' What can monkeys teach us about stock market bubbles? It turns out that monkeys make decisions much like investors on the trading floor—they develop a herd mentality, mimicking the behavior of others until over inflation and the eventual pop. "This tendency to follow the herd emerges from our social brain networks," explains Michael Platt, professor of neuroscience at the University of Pennsylvania. This network allows us to learn and adapt based on information from those around us. But these learnings are not always positive. In the context of money and the stock market, following the herd could result in bad financial decisions. The key, Platt says, is learning to take a step back and resist impulses, which in some ways goes against our evolution and the way our brains work. "There's a trade off between speed and accuracy in decision-making," he says. "If we could slow people down, that would allow more evidence to accumulate, and they're more likely to make a better decision." ------------------------------------------------------------------------------------------------------------------------------------------------------- Listen To This Next: Adam Grant's #1 phrase to unlock potential The science of super longevity Beat anxiety with the most addictive experience on Earth Go Deeper with Big Think: ►Become a Big Think Member Get exclusive access to full interviews, early access to new releases, Big Think merch and more ►Get Big Think+ for Business Guide, inspire and accelerate leaders at all levels of your company with the biggest minds in business --------------------------------------------------------------------------------------------------------------------------------------------------- About Big Think | Smarter Faster™ ► Big Think The leading source of expert-driven, educational content. With thousands of videos, featuring experts ranging from Bill Clinton to Bill Nye, Big Think helps you get smarter, faster by exploring the big ideas and core skills that define knowledge in the 21st century. Get Smarter, Faster.... With Episodes From The Worlds Biggest Thinkers. Follow The Podcast And Turn On The Notifications!! Share This Episode If You Found It Valuable Leave A 5 Star Review Learn more about your ad choices. Visit megaphone.fm/adchoices