Behavioral finance FAQ / Glossary (Attention)
This is a separate page of the A section of the Glossary
Dates of related message(s) in the
Behavioral-Finance group (*):
Year/month, d: developed / discussed,
Attention anomaly, bias, disorder,
00/8i - 02/3i + see selective
attention, cognitive overload,
tunnel vision, anchoring, heuristic,
weak signal, overtrading, boredom,
emotion, perception, salience
How come I missed it?
We suffer an attention (or attentional) anomaly (or bias) when we do not take
notice of something crucial to make a decision.
OK, nearly a platitude, but it might raise the reader's ...attention ;-)
This occasional or, for some people frequent (*), deficiency, is a
blind spot in sensory and mental perception (see that word)
(*) If that flaw is highly repetitive, the person is said to suffer an "attention
It is hard to walk and chew gum at the same time
or, more seriously, it is easy to:
Overlook, neglect or misinterpret
the available information.
This mental myopia might result from a:
Cognitive overload (too heavy newsflow and the unability to
or habit, anchoring, stereotypes and other heuristics,
beliefs (see those words)
or just lack of attention, effort or interest.Oops, sorry I was thinking or my next holidays!
Focus only on the most apparent
because of tunnel vision.
What is behind such biases?
What can distract or blind the mind?
The causes of attention failures
Cognitive biases (as seen above)
Emotions (affect heuristic...) that
divert the attention or makes it selective
(see selective attention)
Pure habits (autopilot bias).
Information overload and the
Manipulations (see that word)
used to divert somebody's
attention (lures, red herrings...).
which leads to a few
caused by neglecting
Repetitive, verging on
"attention disorders", as
a pathology is called.
Attention and investing
Some studies state that a form of this bias is spreading in today markets.
Investors and fund managers are subject to the same biases than those
They tend to get bored and lose interest easily in the assets they
hold (this is the opposite of the "endowment bias" that is common in
They move to other assets, in fits of hyperactivity
(see overtrading and also ...boredom).
This is a kind of reverse "divesture aversion".
(*) To find those messages: reach that BF group
and, once you are there,
1) click "messages", 2) enter your query in "search archives".
Members of the BF Group, please
vote on the glossary quality at BF polls