scholarly journals Transferring cognitive talent across domains to reduce the disposition effect in investment

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Kristian Rotaru ◽  
Petko S. Kalev ◽  
Nitin Yadav ◽  
Peter Bossaerts
Keyword(s):  
Social Cognitive ◽  
Investment Decisions ◽  
Social Contexts ◽  
Disposition Effect ◽  
Perceptual Dimension ◽  
Cognitive Dimension ◽  
Personal Investment ◽  
The Social ◽  
Intervention Policy ◽  
Cognitive Deficiencies

AbstractWe consider Theory of Mind (ToM), the ability to correctly predict the intentions of others. To an important degree, good ToM function requires abstraction from one’s own particular circumstances. Here, we posit that such abstraction can be transferred successfully to other, non-social contexts. We consider the disposition effect, which is a pervasive cognitive bias whereby investors, including professionals, improperly take their personal trading history into account when deciding on investments. We design an intervention policy whereby we attempt to transfer good ToM function, subconsciously, to personal investment decisions. In a within-subject repeated-intervention laboratory experiment, we record how the disposition effect is reduced by a very significant 85%, but only for those with high scores on the social-cognitive dimension of ToM function. No such transfer is observed in subjects who score well only on the social-perceptual dimension of ToM function. Our findings open up a promising way to exploit cognitive talent in one domain in order to alleviate cognitive deficiencies elsewhere.

scholarly journals Transferring Cognitive Talent Across Domains: The Case of Finance

2021 ◽  
Author(s):  
Kristian Rotaru ◽  
Petko S. Kalev ◽  
Nitin Yadav ◽  
Peter Bossaerts
Keyword(s):  
Theory Of Mind ◽  
Cognitive Bias ◽  
Interpersonal Skills ◽  
Investment Decisions ◽  
Social Contexts ◽  
Disposition Effect ◽  
Personal Investment ◽  
Emotional Dimension ◽  
Intervention Policy ◽  
Cognitive Deficiencies

Abstract We consider Theory of Mind, the ability to correctly predict the intentions of others. The skill requires abstraction from one’s own particular circumstances. Here, we posit that such abstraction can be transferred successfully to other, non-social contexts. We consider the disposition effect, which is a pervasive cognitive bias whereby investors, including professionals, improperly take their personal trading history into account when deciding on investments. We design an intervention policy whereby we attempt to transfer Theory of Mind skills, subconsciously, to personal investment decisions. In a within-subject repeated-intervention laboratory experiment, we record how the disposition effect is reduced by a very significant 85%, but only for those with high Theory of Mind skills. No such transfer is observed in subjects who score well only on the emotional dimension of interpersonal skills. Our findings open up a promising way to exploit cognitive talents in one domain in order to alleviate cognitive deficiencies elsewhere.

scholarly journals Transferring Cognitive Talent Across Domains: The Case of Finance

2021 ◽  
Author(s):  
Kristian Rotaru ◽  
Petko S. Kalev ◽  
Nitin Yadav ◽  
Peter Bossaerts
Keyword(s):  
Theory Of Mind ◽  
Cognitive Bias ◽  
Interpersonal Skills ◽  
Investment Decisions ◽  
Social Contexts ◽  
Disposition Effect ◽  
Personal Investment ◽  
Emotional Dimension ◽  
Intervention Policy ◽  
Cognitive Deficiencies

Abstract We consider Theory of Mind, the ability to correctly predict the intentions of others. The skill requires abstraction from one’s own particular circumstances. Here, we posit that such abstraction can be transferred successfully to other, non-social contexts. We consider the disposition effect, which is a pervasive cognitive bias whereby investors, including professionals, improperly take their personal trading history into account when deciding on investments. We design an intervention policy whereby we attempt to transfer Theory of Mind skills, subconsciously, to personal investment decisions. In a within-subject repeated-intervention laboratory experiment, we record how the disposition effect is reduced by a very significant 85%, but only for those with high Theory of Mind skills. No such transfer is observed in subjects who score well only on the emotional dimension of interpersonal skills. Our findings open up a promising way to exploit cognitive talents in one domain in order to alleviate cognitive deficiencies elsewhere.

Action and Interaction

2020 ◽  
Author(s):  
Shaun Gallagher
Keyword(s):  
Social Cognitive ◽  
Temporal Structure ◽  
Empirical Studies ◽  
Social Institutions ◽  
Social Contexts ◽  
Standard Theory ◽  
Political Issues ◽  
Basic Action ◽  
The Social

Action and Interaction is divided into three parts. The first part focuses on the nature of action, starting with questions about action individuation, context, the notion of ?basic action? and the temporal structure of action. The importance of circumstance for understanding action is stressed. These topics lead to questions about intention and the sense of agency and ultimately to the idea that we need to consider action in the social contexts of interaction. The second part looks at the role of interaction in discussions of social cognition, building a contrast between standard theory- of-mind approaches and embodied/enactive accounts. Gallagher defends an enactive-interactionist account drawing on evidence from both phenomenology and empirical studies of development, ecological psychology, and studies of communicative and narrative practices, especially in more complex social practices. The third part transitions from considerations that focus on social-cognitive issues to understanding their implications for concepts that are basic to the development of a critical theory that addresses social and political issues, especially with respect to basic concepts of autonomy, recognition and justice, and the effects of norms and social institutions on our actions and interactions

You Liar! Attributions of Lying

2021 ◽  
pp. 0261927X2199969
Author(s):  
Drew A. Curtis
Keyword(s):  
Social Cognitive ◽  
Social Contexts ◽  
Negative Attitudes ◽  
The Social ◽  
The Liar

Language is vastly important in shaping cognitions. The word “liar” is used in a variety of social contexts and deception literature, eliciting numerous images, and is rarely the object of research. Two studies explored how people think of the social cognitive label of “liar.” In Study 1, the actor-observer difference in the liar attribution was examined, in how people view their own lying compared to others’ lies. Additionally, attitudes and acceptability of self and others’ lies were investigated. In Study 2, the liar attribution was examined across various types of lies. Results indicated that people judge others to be more deserving of the liar label than one’s self and others lie based on their disposition. Additionally, people held more negative attitudes toward others who lie but were more accepting of others who lie.

Social Cognition in Gilles de la Tourette Syndrome

2019 ◽  
Vol 30 (4) ◽  
pp. 243-249
Author(s):  
Ronja Weiblen ◽  
Melanie Jonas ◽  
Sören Krach ◽  
Ulrike M. Krämer
Keyword(s):  
Tourette Syndrome ◽  
Social Cognitive ◽  
Mirror Neuron System ◽  
Mirror Neuron ◽  
Theoretical Work ◽  
Neural Processes ◽  
The Social ◽  
Decision Making System ◽  
Social Decision Making ◽  
Work Done

Abstract. Research on the neural mechanisms underlying Gilles de la Tourette syndrome (GTS) has mostly concentrated on abnormalities in basal ganglia circuits. Recent alternative accounts, however, focused more on social and affective aspects. Individuals with GTS show peculiarities in their social and affective domain, including echophenomena, coprolalia, and nonobscene socially inappropriate behavior. This article reviews the experimental and theoretical work done on the social symptoms of GTS. We discuss the role of different social cognitive and affective functions and associated brain networks, namely, the social-decision-making system, theory-of-mind functions, and the so-called “mirror-neuron” system. Although GTS affects social interactions in many ways, and although the syndrome includes aberrant social behavior, the underlying cognitive, affective, and neural processes remain to be investigated.

Collective Human Agency in the Context of Organizational Participation

2017 ◽  
Vol 61 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Wolfgang Georg Weber ◽  
Hans Jeppe Jeppesen
Keyword(s):  
Collective Efficacy ◽  
Social Cognitive ◽  
Work Motivation ◽  
Human Agency ◽  
Employee Participation ◽  
Ecological Approach ◽  
Cognitive Approach ◽  
Organizational Decision Making ◽  
Organizational Participation ◽  
The Social

Abstract. Connecting the social cognitive approach of human agency by Bandura (1997) and activity theory by Leontiev (1978) , this paper proposes a new theoretical framework for analyzing and understanding employee participation in organizational decision-making. Focusing on the social cognitive concepts of self-reactiveness, self-reflectiveness, intentionality, and forethought, commonalities, complementarities, and differences between both theories are explained. Efficacy in agency is conceived as a cognitive foundation of work motivation, whereas the mediation of societal requirements and resources through practical activity is conceptualized as an ecological approach to motivation. Additionally, we discuss to which degree collective objectifications can be understood as material indicators of employees’ collective efficacy. By way of example, we explore whether an integrated application of concepts from both theories promotes a clearer understanding of mechanisms connected to the practice of employee participation.

The social-cognitive mechanisms regulating adolescents' use of doping substances

2007 ◽  
Author(s):  
F. Lucidi ◽  
A. Zelli ◽  
L. Mallia ◽  
C. Grano ◽  
C. Violani
Keyword(s):  
Social Cognitive ◽  
Cognitive Mechanisms ◽  
The Social
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