Behavioral finance FAQ / Glossary (Attitude)

A    B    C    D    E    F    G-H    I-L    M    N-O    P-Q    R    S    T-U    V-Z

Full list

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,
i: incidental

(common) Attitude

00/8i - 02/7i + see
risk attitude, aversion

The market as a financial food tasting and rating party...

Definition



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

Situations, beliefs,
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),

Reasoning,

Remembrance, experience, habits

Beliefs

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

special situations.


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
.

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

and behaviors

Money tastes

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
risk attitude).

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".

Members of the BF Group, please
 vote on the glossary quality at BF polls

separ

This page last update: 28/08/15   

  A section of the Glossary
  Behavioral-Finance Gallery main page

Disclaimer / Avertissement légal