Individual Decision Making : Implications of Herd Behavior

The main objective of this paper is to present the implications for individual behavior of herd behavior understanding it as a social heuristic that in certain situations can allow to make decisions. The first part of the paper is a revision of the conventional theories and the limitations identified by Rubinstein (2007), Beshears (2008), and Bowles (2003). Finally it arrives to the conclusion that herd behavior it is based on different arguments from conventional theory