Psychological studies have shown that people confronted with uncertainty tend to look to others for cues on how to behave. The psychologist Robert Cialdini calls this phenomenon "social proof." Social proof helps to explain some of the most startling paradoxes in human behavior. Managers try to figure out how to deal with discontinuous changes in market, they tend to follow their most successful peers , who have repeatedly proved their ability to make the right decisions in the past. In other words, they engage in benchmarking. Usually this is wise. When fundamental changes occur, however, looking to others within one's industry, especially market leaders, can be a recipe for the demise of everyone in the industry...
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