Question

Explain two possible reasons why Japanese economists tend to mimic others as they grow older

Answer 1

why Japanese economists tend to mimic others as they grow older:

Herd behaviour:- when an agent or person mimics the behaviour brought about by another person based upon the reputation.

1)Japanese econimists joined the herd behaviour maily because they could mimic the reputated agent's behaviour because they believe that the agents have more accurate information than them . Also, these economists tend to think that their behaviour is directly related to their payoffs and relative performance.

2) Mimic of other's pattern is done by economists to gain a better apy off in the short run and to bring stability in the market. One positive impact is of stabilising market prices.

Although, mimicking has led to a more stable environment but it resulted in opposite consequences in the long run .