Behavioral finance FAQ / Glossary (Cultural)

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Dates of related message(s) in the
Behavioral-Finance group (*):
Year/month, d: developed / discussed,
i: incidental

Cultural bias

Cultural asymmetry

Culture, market culture,

02/7i- 05/2i + see profiling,
styles, (cultural) asymmetry,

neuro-semantics, knowledge


The advantage of the right culture in the right situation.

This incite us to extend our culture in many areas
as a never-ending process.

Obviously differences in types and depths of cultures are found among
people (see asymmetry), which impacts their behaviors.

Definition: cultural bias (cultural narrowness).

A cultural bias is taking only into account one's own culture when
judging and interpreting phenomena.

In decision making, somebody's cultural bias might be

a survival tactic among people with the same culture,
or in matters in which they excel.

=> A "deviant" (or ignorant) might put itself in a blind

But sticking blindly to it (because of lazy thinking or lack
of courage) might also bring disaster

* in matters in which other cultures, knowledge,
practices are at play and would perform better.

* or when new situations make that culture maladapted
   and make conformity counter productive.

Effect of market culture
     on economic and investing decisions

Market literacy


  Market culture / literacy is the understanding of how markets works
            and of their norms.

Those who lack it will find themselves at a disadvantage in investment
matters.....except if luck is on their side

(or,why not if they discovered something that this culture was neglecting).

More generally, economic and financial cultures differ between countries
(and epochs), and of course between levels of education and kinds of

Among other cultural differences, some crucial ones might be about the

risk attitude.

Investor culture is a criterion to build simulation models in which each
population segment correspond to an investors type (see that phrase).

The difficulty is to identify the "soft" (= behavioral) aspects of such a culture
in individual minds.

Neuro-semantics (speech analyzing) is a field of research that deals with
such things, among others.

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This page last update: 23/09/15


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