Herding behavior refers to the tendency of individuals to follow the actions or decisions of a larger group, often leading to collective behavior. This phenomenon can be observed in various contexts, such as in animals like sheep or in human activities like stock market trading, where people may buy or sell based on what others are doing rather than their own analysis. This behavior can result in rapid changes in group dynamics, sometimes leading to irrational decisions. For example, during a financial crisis, many investors may panic and sell their stocks simply because others are doing the same, rather than evaluating the situation independently.