When an association of animals (or, by extension, people) is described as a "herd", the implication is that the group tends to act together (for example, all moving in the same direction at a given time), but that this does not occur as a result of planning or co-ordination. Rather, each individual is choosing behaviour that corresponds to that of the majority of other members, possibly through imitation or possibly because all are responding to the same external circumstances. A herd can be contrasted with a co-ordinated group where individuals have distinct roles. Many human groupings, such as an army detachments or sports teams, show such co-ordination and differentiation of roles, but so do some animal groupings such as those of eusocial insects, which are co-ordinated through pheromones and other forms of animal communication. Conversely, some human groupings may behave more like herds.

Why do animals herd?

The structure and size of herds

A herd is by definition relatively unstructured. However, there may be one or a few animals which tend to be imitated by the rest of the members of the herd more than others. An animal taking this role is called a "control animal", since its behaviour will predict that of the herd as a whole. It cannot be assumed, however, that the control animal is deliberately taking a leadership role. Control animals are not necessarily, or even usually, those that are socially dominant in conflict situations, though they frequently are. Group size is an important characterestic of the social environment of gregarious species.

Domestic herds

Domestic animal herds are assembled by humans for practicality in raising them and controlling them. Their behaviour may be quite different from that of wild herds of the same or related species, since both their composition (in terms of the distribution of age and sex within the herd) and their history (in terms of when and how the individuals joined the herd) are likely to be very different.

Human parallels

The term herd is also applied metaphorically to human beings in social psychology, with the concept of herd behaviour. However both the term and concepts that underlie its use are controversial.

The term has acquired a semi-technical usage in behavioral finance to describe the largest group of market investors or market speculators who tend to 'move with the market,' or 'follow the general market trend.' This is at least a plausible example of genuine herding, though according to some researchers it results from rational decisions through processes such as information cascade and rational expectations. Other researchers, however, ascribe it to non-rational process such as mimicry, fear and greed contagion. "Contrarians" or contrarian investors are those who deliberately choose to invest or speculate counter to the "herd".