Kırmızıaltın, ErenÇeri, Duygu2026-04-252026-04-252024979-836937829-8979-836937827-4https://doi.org/10.4018/979-8-3693-7827-4.ch002https://hdl.handle.net/11486/8099Herd behavior is important topics in behavioral finance. In financial markets, herd behavior occurs when investors follow the crowd, making decisions based on current trends or the actions of others rather than conducting their own thorough analysis. This behavior, combined with market overreaction plays a significant role in price volatility and financial instability. To analyze these behaviors effectively, it's essential to understand the underlying mechanisms, particularly the psychological and cognitive factors that drive them. This study focuses on the connection between herd behavior and the availability cascade. Given the focus of this study, the analysis has been tailored to explore this relationship specifically. Consequently, the study not only focuses on the psychological and cognitive factors that cause herding behavior in financial markets but also tries to explain the relationship between the psychological and cognitive factors that cause herding behavior and the availability cascade. © 2025 by IGI Global Scientific Publishing. All rights reserved.eninfo:eu-repo/semantics/closedAccessBehavioral researchCommerceElectronic tradingInvestmentsBehavioural financesCognitive factorsDecision-basedHerd behaviorsHerding behaviorsMaking decisionOn currentsOn-currentsPrice volatilityPsychological factorsFinancial marketsBook Part235110.4018/979-8-3693-7827-4.ch0022-s2.0-105009194293N/A