Philosophy Dictionary of ArgumentsHome
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| Stock market: The stock market is a platform where buying, selling, and issuing of shares of publicly traded companies occur. It's a marketplace where investors trade ownership in companies, influenced by factors like company performance, economic conditions, and investor sentiment._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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James Surowiecki on Stock Market - Dictionary of Arguments
I 320 Stock Market/Information/Communication/Knowledge/Surowiecki: Keynes compares the stock market with a beauty contest in which everyone tries to find out what the average person thinks is what other average people think is beautiful. >J. M. Keynes. Surowiecki: but you have to add that there is only a chance to find out the prettiest girl if some participants really think about which one is the prettiest. I 321 Behavior: the temptation to behave according to the image of others is almost irresistible. When investors mimic each other, the wisdom of the group as a whole falls. Some information might make things worse. The stock market bubble of the 1990s coincided with an explosive increase in financial news. >Group think, >Group behavior. I 324 Paul Andreassen showed with students at the MIT (1) how a group with additional current information about stocks performed worse than a peer group without this information. Andreassen suspects that newspaper reports play up the importance of every single message, which leads to overreactions. Surowiecki: the problem of the overvaluation of news escalates when it reaches all market participants. >Information/Economic Theories, >Information/Hayek. 1. Paul Andreassen, »On the Social Psychology of the Stock Market – Aggregate Attributional Effects and the Regressiveness of Predictions«, Journal of Personality and Social Psychology 53/1987, S. 490-498._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Surowi I James Surowiecki Die Weisheit der Vielen: Warum Gruppen klüger sind als Einzelne und wie wir das kollektive Wissen für unser wirtschaftliches, soziales und politisches Handeln nutzen können München 2005 |
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> Counter arguments against Surowiecki
> Counter arguments in relation to Stock Market
Ed. Martin Schulz, access date 2024-04-27