Behavioral finance FAQ / Glossary (Viral)

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Dates of related message(s) in the Behavioral-Finance group (*):

Year/month, d: developed / discussed, i: incidental

Viral communication

07/6i + See meme, epidemics, contagion, percolation,

critical threshold, rumor diffusion, buzz, information

The buzz multiplies and spreads,

and multiplies and spreads, and multiplies...

Definition:

Viral communication is the dissemination of information

(either true facts or plain rumors) between individuals

by self replication.

Receivers in their turn reproduce and send them, becoming "contagious agents",

whence the analogy with viruses.

Human networks and viral infiltration. Is it always succeeding?

Spreading the virus via the social blood system.

But don't bet on a virus that is a loser!

Viral communication is usually a spontaneous phenomenon that

affects existing human networks (notably the Internet).

Such an "epidemic" might abort - something quite frequent - instead of becoming a widespread "buzz".

It happens often that not enough people get interested. They have ...viral antibodies.

Then the contamination does not break through a critical threshold (*)

(in this case a large enough mass of people).

(*) See the "percolation" glossary article.

Is it a disease of the information world?

Which are the good viruses ?

Which ones add value and which one are destructive?

Which ones inform and which ones misinform?

Which ones are just spinning and spamming agents?

The comparison to a viral infection does not mean that viral communication is always a disease.

Its good or bad effects depend of the power of the "virus", in other words

of the perceived positive or negative importance of the information that is disseminated.

Buzz becomes a disease only when:

* it spreads false or dubious information into a network,

* it turns into a vehicle for invented rumors or abusive spin,

* and/or it invades massively a network (a kind of filibustering) at the detriment of other information

Among such practices, it is not easy to categorize.

which ones are limited, transparent, well meaning and legitimate communication,

which ones are lying, invasive, deceitful and malevolent spamming.

It is sometimes a manipulative tool when it infiltrates networks to perform spin:

In marketing (viral marketing, buzz marketing),

In cult diffusion or in politics,

And, last but not least, to promote or discredit, more or less

sneakily, some stocks and other investments.

The temptation is understandable, as information is

the main investor's food.

How they receive and interpret such "news", and use them in

market transactions, is decisive for asset market prices and returns.

(*)To find those messages: reach that Behavioral-Finance group and, once you are there, 1) click "messages", 2) enter your query in "search archives".

Members of the Behavioral Finance Group, please vote on the glossary quality at Behavioral-Finance/polls

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