Bandwagon Effect

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Dictionary Says

Definition of 'Bandwagon Effect'

A psychological phenomenon whereby people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override. The bandwagon effect has wide implications, but is commonly seen in politics and consumer behavior. This phenomenon can also be seen during bull markets and the growth of asset bubbles.

This tendency of people to align their beliefs and behaviors with those of a group is also called "herd mentality."

Investopedia Says

Investopedia explains 'Bandwagon Effect'

For example, people might buy a new electronic item because of its popularity, regardless of whether they need it, can afford it, or even really want it. In politics, the bandwagon effect might cause citizens to vote for the person who appears to have more popular support because they want to belong to the majority.

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'Bandwagon Effect'

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    ... As the time horizon of an investment increases, however, the effect of noise ... For
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  • Tips For Avoiding Excessive Trading

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    ... Problems.) To make matters worse, novice traders are most likely to trade on the
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  • An Introduction To Consensus Indicators

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    ... or crowd behavior) examines how behavior of all investors exerts an effect on a ... the
    herd is almost always wrong, or at least late in jumping on the bandwagon. ...

  • Market Cycles: The Key To Maximum Returns

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    ... As this phase matures, more investors jump on the bandwagon as fear of being in
    the ... Cycle One of the best examples of the cycle phenomenon is the effect of the ...

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    ... to the company after deep job cuts and an overall improvement in market conditions
    begin to take effect. ... And it may not be too late to jump on the bandwagon. ...

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    ... Problems with Gold as an Investment Before jumping on the gold bandwagon, I often ...
    Gold Standard Revisited.) In investing, you can't ignore the effect of human ...

  • The World Cup 2010 Portfolio

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    ... in the tournament Nike could hit the jackpot with American consumers jumping aboard
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  • Active Trading Fundamentals Articles | Investopedia

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    ... Read More »; An Introduction To Consensus Indicators. Learn how the herd is almost
    always wrong, or at least late in jumping on the bandwagon. Read More »; ...

  • Active Trading Fundamentals Articles | Investopedia

    http://www.investopedia.com/articles/tags/Active_Trading_Fundamentals/
    ... Read More »; An Introduction To Consensus Indicators. Learn how the herd is almost
    always wrong, or at least late in jumping on the bandwagon. Read More »; ...

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