2. Herd effect is often used in economics to describe the herd mentality of economic individuals. "Herd effect" means that everyone has herd mentality, which easily leads to blind obedience, and blind obedience often leads to fraud or failure.
3. Herd effect generally appears in highly competitive industries. If a leader occupies the main attention of this industry, then the whole flock will constantly imitate the leader's every move. Where this leader eats grass, other sheep will also go for gold.