Is there any difference between the broken window effect and the herd effect?

1. The meaning is different.

The term "herd effect" is often used in economics.

to describe the herd mentality of economic individuals. The "herd effect" is a metaphor for the herd mentality.

The herd mentality can easily lead to blind obedience, and blind obedience often falls into ** or fails.

The broken window theory, simply put, "damage is beneficial", refers to the assumption that when the market is completely saturated, a person smashes the glass window of a barbershop, although this act causes damage to society, but the barber's misfortune is a boon to society, and it will create opportunities for glass manufacturers, and the producers will buy the products of other manufacturers after getting the money.

2. The content is different.

If a child breaks a window, it will inevitably cause the window breaker to replace the glass, which will cause the glass installers and glass producers to start working, thus promoting social employment.

The emergence of the herd effect is generally in a very competitive industry, and there is a leader (leader) in the industry who occupies the main attention, then the whole flock will continue to imitate the leader's every move, the leader goes to graze, and other sheep also go to pan for gold.

3. The role is different.

Rationally use and guide the behavior of the herd.

Regional brands can be created and economies of scale can be formed.

So as to obtain the best results that the benefits outweigh the disadvantages. Finding a good leader is key to capitalizing on the herd effect.

If the window has been broken, it should be repaired in time. If the investor is speculating in foreign exchange.

At this time, what investors need to do is to adjust their mentality and patiently look for the next opportunity to enter the market, rather than breaking the jar.

Encyclopedia - Broken Window Theory.

Encyclopedia - The Herd Effect.

The difference between the broken window effect and the herd effect is that the concepts are different, the fields are different, and the focus is different.

First, the concept is different.

1. Broken window effect: The broken window effect believes that if the bad phenomena in the environment are allowed to exist, they will induce people to imitate them, or even worsen them.

2. Herd effect: The herd effect is a metaphor for people who have a herd mentality, which can easily lead to blind obedience, and blind obedience often falls into ** or fails.

Second, the field is different.

1. Broken window effect: The broken window effect is a theory in criminology.

Third, the focus is different.

1. The Broken Window Effect: The Broken Window Theory emphasises that cracking down on minor crimes can help reduce more serious crimes, and that crime should be tackled with a zero-tolerance attitude.

2. Herd effect: emphasizing the rational use and guidance of herd behavior can create a regional brand and form a scale effect, so as to obtain a better effect that the benefits outweigh the disadvantages. Finding a good leader is the key to harnessing the herd effect, and the public must also maintain a sense of innovation and the ability to think independently.

Herd effect. The difference from the broken window theory is:The herd effect is because of the influence of the masses who change their minds.

The broken window theory is because of the influence of the public, who changed their behavior, but their thoughts have not changed, and it turns out that they have always wanted to smash windows.

In fact, it is easy to see the difference between them, the former is because they have been influenced by the majority of people, changed their own views, and echoed others.

The latter is influenced by precedent and stimulates an idea that exists in its own right. There is a precedent that emboldens me to think that it doesn't matter. Do it because there is a precedent, not because you think most people do it after they do it.

Although there are differences in the details, both are a kind of herd behavior, and if we don't conform to the herd, we will feel anxious and isolated. Most of this anxiety comes from: emotional thinking likes to follow the crowd, and rational thinking desires to be extraordinary.

Other effects include:

Butterfly Effect:

In the 70s of the last century, an American meteorologist named Lorenz said when explaining the theory of the air system, the Amazon rainforest.

The occasional vibration of a butterfly's wings may cause it in Texas, USA, two weeks later.

A tornado.

The butterfly effect is the idea that very small changes in the initial conditions are amplified and can make a huge difference in their future state. Some small things can be confused, and some small things, if they are systematically amplified, are very important to an organization and a country, and they cannot be confused.

The Catfish Effect:

Previously, sardines.

The survival rate during transportation is very low. Later, it was discovered that if a catfish was put in the sardines, the situation would be improved, and the survival rate would be greatly improved.

It turns out that after the catfish arrive in an unfamiliar environment, they will be "irritable" and swim around, which undoubtedly plays a stirring role for a large number of quiet sardines.

And the sardines found that there was such an "alien molecule" blindly, so they were naturally very nervous and accelerated their swimming. In this way, the problem of lack of oxygen in sardines will be solved, and the sardines will not die.