"Evidence reveals that psychological factors play an important role in determining the expectations of market traders, and these expectations become self-fulfilling prophecies. When traders all move in one direction at the same time, this is known as ."

the bandwagon effect

Explanation:

The bandwagon effect is a phenomenon whereby the rate of uptake of beliefs, ideas, fads and trends increases the more that they have already been adopted by others

Evidence reveals that psychological factors play an important role in determining the expectations of market traders, and these expectations become self-fulfilling prophecies. When traders all move in one direction at the same time, this is known as the bandwagon effect.

The Bandwagon Effect.

answer; i believe the correct answer is (4) flip a coin as each participant arrives,heads indicates assignment to the first group: tails indicates assignment to the second group;