Behavioral finance FAQ / Glossary (Attitude)
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,
00/8i - 02/7i + see
risk attitude, aversion
The market as a financial food tasting and rating party...
A mental attitude is a liking or a dislike / aversion...
...generally for something, somebody, an idea,
...or either for, or against, initiating, pursuing or ceasing a behavior.
...in investment matters, for something linked to the appreciation
of risk and prospects
Such an attitude can be
* either active (enticing to take an initiative),
* or passive (leading to be wary and to avoid a move).
What drives attitudes
and also happy or gloomy feelings
To feed attitudes, anything goes,
either coming from the outside or the inside:
Events, information, situations (and how they are perceived)
Feelings, emotions (themselves often in reaction to events),
Remembrance, experience, habits
Or whatever other internal or external stimulus.
We see thus that attitudes, although usually conscious cognitive phenomena, are
often - at the same time - driven by feelings and emotions (see emotion).
Neuroscience research has found relations between positive and
negative attitude and some brain chemicals, areas and connections
linked to pleasure and suffering.
Individual attitudes and common attitudes
A matter of taste ...or distaste.
To have attitudes, tastes and preferences is an innate feature of the human mind.
They differ between individuals, but conformity might spread similar ones within
a group or society.
Every individual carries its own personal attitudes.
Some are constant, and some temporary when facing
A society or group might also have a common attitude
(see social, groupthink),
People tend to like or dislike the same things than their neighbors.
It could be caused by empathy, contamination,
fear to be left alone... or because dissenters, gettting fed up
with the conformity pressure, give their key back to the porter
and leave the neighborhood ;-)
In decision making, there is an interplay
between individual attitudes and social attitudes.
The common attitudes, that tend to be sticky, limit, for good or
bad,the independence of individual attitudes.
Effects of attitudes
Attitudes (as well as beliefs) tend to translate into decisions and
Behaviors might match attitudes, but not always,
as there can be an hesitation to "cross the line" between them.
In their turn, those decisions and behaviors influence all fields of personal
and social life.
Money and investment attitudes
Attitudes, and the related behaviors; obviously have an impact on economic /
financial events (supply, demand, price...).
An important factor on those areas, and notably in investment, is
the risk attitude (from risk aversion to risk seeking : see
Attitudes (and behaviors) related to money matters, and specially to investment,
are a key field of research in behavioral economics / behavioral
finance (see those phrases).
(*) To find those messages: reach that BF
group and, once there,
1) click "messages", 2) enter your query in "search archives".
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