Dynamics of investor attention on the social web

Authors
Li, Xian
ORCID
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Other Contributors
Hendler, James A.
Teall, John L., 1958-
McGuinness, Deborah L.
Bringsjord, Selmer
Issue Date
2013-12
Keywords
Cognitive science
Degree
PhD
Terms of Use
This electronic version is a licensed copy owned by Rensselaer Polytechnic Institute, Troy, NY. Copyright of original work retained by author.
Full Citation
Abstract
Contribution I investigates mechanisms of cognitive control in individual investor's temporal selective attention. We develop formalisms of "cognitive niches", i.e., interplays between heuristics from adaptive cognitive control, to account for the selectivity of investor attention. Utilization of these cognitive niches is validated by empirical observations of investors' tweeting activities on assets. Such selective mechanisms are further shown to be contextual, depending on types of assets, investing experiences, and investing approaches. Embedded in a highly connected social environment, investor attention is found to employ the "social proof" heuristic, and the drawing power of the crowd in directing investor attention is significant and exceeds that of salient exogenous stimuli, especially when uncertainty in the financial market is high.
Description
December 2013
School of Humanities, Arts, and Social Sciences
Department
Dept. of Cognitive Science
Publisher
Rensselaer Polytechnic Institute, Troy, NY
Relationships
Rensselaer Theses and Dissertations Online Collection
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