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Economics

Cognitive Biases and Herd Behavior in Asset Bubbles

Quick fact

The Dutch tulip mania of the 1630s saw single tulip bulbs sell for more than 10 times a skilled craftsman's annual income, before prices collapsed virtually overnight.

Why this is interesting

Have you ever bought something just because everyone else was buying it, even if you weren't sure it was worth it? What if that urge influenced an entire global market?