scholarly journals Social finance as cultural evolution, transmission bias, and market dynamics

2021 ◽  
Vol 118 (26) ◽  
pp. e2015568118
Author(s):  
Erol Akçay ◽  
David Hirshleifer
Keyword(s):  
Institutional Environment ◽  
Evolutionary System ◽  
Market Outcomes ◽  
Mutation Pressure ◽  
Structure Information ◽  
Market Participants ◽  
Social Network Structure ◽  
Cultural Traits ◽  
Cultural Evolutionary ◽  
Psychological Bias

The thoughts and behaviors of financial market participants depend upon adopted cultural traits, including information signals, beliefs, strategies, and folk economic models. Financial traits compete to survive in the human population and are modified in the process of being transmitted from one agent to another. These cultural evolutionary processes shape market outcomes, which in turn feed back into the success of competing traits. This evolutionary system is studied in an emerging paradigm, social finance. In this paradigm, social transmission biases determine the evolution of financial traits in the investor population. It considers an enriched set of cultural traits, both selection on traits and mutation pressure, and market equilibrium at different frequencies. Other key ingredients of the paradigm include psychological bias, social network structure, information asymmetries, and institutional environment.

scholarly journals THE INFLUENCE OF ARCHETYPES ON SOCIAL TRANSFORMATIONS

2018 ◽  
Vol 1 (14) ◽  
pp. 62-74
Author(s):  
Nataliia Leonidivna Gavkalova ◽  
Oleg Yuriyovych Amosov
Keyword(s):  
Institutional Environment ◽  
Social Transformations ◽  
Economic Relations ◽  
Market Participants ◽  
Social Nature ◽  
National Market ◽  
Active Nature ◽  
Definition Of ◽  
Effective Use ◽  
Development And Management

The vision of social transformations, which is a component of the stage of modernization of society, is presented. It is proposed to consider the influence of archetypes on social transformations through the formation of an archetypical and institutional mechanism for regulating socio-economic relations, which is proposed to be considered as an ordered set of institutional levers, incentives and measures aimed at ensuring the effective use of archetypes on the basis of a combination of factors of the micro- and macroeconomic environment by means of public administration. The emphasis is placed on the strengthening of the role of state and supra-national regulatory archetypical-institutional entities in the design of social transformations. Based on the existing theoretical and conceptual provisions for determining the content of the process of institutionalization of archetypes, it has been determined that the mechanism of regulation of institutional transformations of the national market should be considered in three main aspects, corresponding to the economic and social nature of the inter-subjective interaction of market participants. It is noted that the system-reflexive paradigm of regulation of the development and management of transformational changes of complex open socio-economic systems is based on the definition of the active nature of the influence of archetypes, subjects, as well as the reflexive procedures of their interaction, both on the choice of directions and ways of implementation, and on the dynamics of the flow of these processes. The composition of the main provisions that determine the feasibility of using a system of reflexive paradigm in the field of regulation of socio-economic relations, includes a set of assumptions. The main provisions defining the expediency of using the system-reflexive paradigm in the sphere of regulation of socio-economic relations are determined. It is established that the main institutional conflicts are manifestations of inconsistency between archetypes and elements of institutional environment.

scholarly journals How cultural evolution can inform the science of science communication—and vice versa

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Theiss Bendixen
Keyword(s):  
Cultural Evolution ◽  
Real World ◽  
Behavioral Change ◽  
Science Communication ◽  
Accurate Information ◽  
Communication Research ◽  
Science Of Science ◽  
Real World Setting ◽  
Cultural Traits ◽  
Cultural Evolutionary

AbstractCultural evolution research is the study of how cultural traits (e.g., beliefs and behavioral patterns) stabilize, change and diffuse in populations, and why some cultural traits are more “attractive” (i.e., more likely to spread) than others. As such, cultural evolution is highly relevant for the emerging “science of science communication” (SSC) in that it can help organize and guide the study of science communication efforts aimed at spreading scientifically accurate information and inspiring behavioral change. Here, I synthesize insights and theory from cultural evolution with central findings and concepts within the SSC with the aim of highlighting the inherent, but underexplored, consilience between these two fields. I demonstrate how cultural evolution can serve as an unifying framework for the SSC and how, conversely, science communication can serve as a fertile testing ground for applying, exploring, and advancing cultural evolutionary theory in a real-world setting that matters. Lastly, I highlight merits and limitations of previous applications of cultural evolution to science communication and conclude with some particularly outstanding questions that emerge at the intersection between cultural evolution and science communication research.

scholarly journals Cultural linkage: the influence of package transmission on cultural dynamics

2019 ◽  
Vol 286 (1916) ◽  
pp. 20191951 ◽  
Author(s):  
D. Justin Yeh ◽  
Laurel Fogarty ◽  
Anne Kandler
Keyword(s):  
Causal Reasoning ◽  
Evolutionary Biology ◽  
Evolutionary Dynamics ◽  
Intermediate Frequency ◽  
Cultural Dynamics ◽  
Cognitive Mechanisms ◽  
Physical Linkage ◽  
Cultural Traits ◽  
Linkage Of Genes ◽  
Cultural Evolutionary

Many cultural traits are not transmitted independently, but together as a package. This can happen because, for example, media may store information together making it more likely to be transmitted together, or through cognitive mechanisms such as causal reasoning. Evolutionary biology suggests that physical linkage of genes (being on the same chromosome) allows neutral and maladaptive genes to spread by hitchhiking on adaptive genes, while the pairwise difference between neutral genes is unaffected. Whether packaging may lead to similar dynamics in cultural evolution is unclear. To understand the effect of cultural packages on cultural evolutionary dynamics, we built an agent-based simulation that allows links to form and break between cultural traits. During transmission, one trait and others that are directly or indirectly connected to it are transmitted together in a package. We compare variation in cultural traits between different rates of link formation and breakage and find that an intermediate frequency of links can lower cultural diversity, which can be misinterpreted as a signature of payoff bias or conformity. Further, cultural hitchhiking can occur when links are common.

The Spatial Structuring of Interurban Housing Markets: Application to Building Sites Prepared for Self-Provided Housing

10.1068/a4110 ◽  
2009 ◽  
Vol 41 (9) ◽  
pp. 2143-2161 ◽  
Author(s):  
Jean-Marie Halleux
Keyword(s):  
Academic Research ◽  
Housing Markets ◽  
Theoretical Framework ◽  
Market Outcomes ◽  
Cross Sectional ◽  
Market Participants ◽  
Two Factors ◽  
Modelling Methodology ◽  
Spatial Autoregressive ◽  
The Impact

The author supports the argument that a focus on the spatiality of economic mechanisms can be a valuable way to address the issue of interurban housing markets, a theme which has not yet been adequately addressed by academic research. Developments are based on a theoretical framework in which two factors are considered central to the structuring of markets: (i) the possibility of choice between substitutable supplies (spatially related to the territory prospected by the consumer), and (ii) the availability of information on the state of the market (spatially related to the use of local sales references when market participants prepare their negotiations). This theoretical framework is empirically applied to the case of building sites prepared for self-built housing, with a modelling methodology elaborated for Belgium. The modelling methodology, based on cross-sectional regressions, develops a spatial autoregressive specification and incorporates a multiscale comparison. By highlighting the importance of information availability and demand substitutability, this exercise confirms that a focus on interurban market spatiality can be helpful to housing researchers. In fact, the results suggest that such a focus is particularly appropriate to the analysis of the impact of planning regulations on market outcomes.

scholarly journals Random Drift and Design Creativity: Evolution of Drawings in the Laboratory

2017 ◽  
Vol 8 (2) ◽  
pp. 24-27
Author(s):  
Minoru Matsui ◽  
Kenta Ono ◽  
Makoto Watanabe
Keyword(s):  
Experimental Data ◽  
Cultural Transmission ◽  
Design Strategies ◽  
Random Drift ◽  
Design Creativity ◽  
The Poor ◽  
Transmission Chain ◽  
Cultural Traits ◽  
Real World Datasets ◽  
Cultural Evolutionary

Previous cultural evolutionary analyses argue that random-copying model that is analogous to genetic drift in population genetics explains a variety of real-world datasets. Few empirical investigations have been done on how cultural traits are actually generated and selected. We present experimental data that matches random-copying simulation very well. In our experiment, designers copied what they considered well designed, and eliminated the poor ones, and designed several novel drawings by different design strategies in a cultural transmission chain. What were conventionally thought useful for designers to produce designs that prosper, such as practice, exposure to other design and experience in design, do not quite contribute to its prosperity. We suggest that some design’s creation processes as well as its market may be value-neutral.

scholarly journals School-to-Work Linkages, Educational Mismatches, and Labor Market Outcomes

2019 ◽  
Author(s):  
Thijs Bol ◽  
Christina Ciocca Eller ◽  
Herman Gerbert van de Werfhorst ◽  
Thomas Albert DiPrete
Keyword(s):  
Labor Market ◽  
Institutional Environment ◽  
Labor Market Outcomes ◽  
The United States ◽  
School To Work ◽  
Educational Systems ◽  
Industrialized Countries ◽  
Market Outcomes ◽  
Flexible Labor ◽  
Educational Degree

A recurring question in public and scientific debates is whether occupation-specific skills enhance labor market outcomes. Is it beneficial to have an educational degree that is linked to only one or a small set of occupations? To answer this question, we generalize existing models of the effects of (mis)match between education and occupation on labor market outcomes. Specifically, we incorporate the structural effects of linkage strength between school and work, which vary considerably across industrialized countries. In an analysis of France, Germany, and the United States, we find that workers have higher earnings when they are in occupations that match their educational level and field of study, but the size of this earnings boost depends on the clarity and strength of the pathway between their educational credential and the labor market. The earnings premium associated with a good occupational match is larger in countries where the credential has a stronger link to the labor market, but the penalty for a mismatch is also greater in such countries. Moreover, strong linkage reduces unemployment risk. These findings add nuance to often-made arguments that countries with loosely structured educational systems have more flexible labor markets and produce better labor market outcomes for workers. An institutional environment that promotes strong school-to-work pathways appears to be an effective strategy for providing workers with secure, well-paying jobs.

scholarly journals Moonshots, investment booms, and selection bias in the transmission of cultural traits

2021 ◽  
Vol 118 (26) ◽  
pp. e2015571118
Author(s):  
David Hirshleifer ◽  
Joshua B. Plotkin
Keyword(s):  
Initial Public Offering ◽  
Risk Taking ◽  
Price Equation ◽  
Mutation Pressure ◽  
Evolutionary Selection ◽  
Cognitive Reasoning ◽  
Cultural Phenomenon ◽  
Probability Of Success ◽  
Cultural Traits ◽  
Public Offering

Biased information about the payoffs received by others can drive innovation, risk taking, and investment booms. We study this cultural phenomenon using a model based on two premises. The first is a tendency for large successes, and the actions that lead to them, to be more salient to onlookers than small successes or failures. The second premise is selection neglect—the failure of observers to adjust for biased observation. In our model, each firm in sequence chooses to adopt or to reject a project that has two possible payoffs, one positive and one negative. The probability of success is higher in the high state of the world than in the low state. Each firm observes the payoffs received by past adopters before making its decision, but there is a chance that an adopter’s outcome will be censored, especially if the payoff was negative. Failure to account for biased censorship causes firms to become overly optimistic, leading to irrational booms in adoption. Booms may eventually collapse, or may last forever. We describe these effects as a form of cultural evolution, with adoption or rejection viewed as traits transmitted between firms. Evolution here is driven not only by differential copying of successful traits, but also by cognitive reasoning about which traits are more likely to succeed—quantified using the Price Equation to decompose the effects of mutation pressure and evolutionary selection. This account provides an explanation for investment booms, merger and initial public offering waves, and waves of technological innovation.

scholarly journals Brain coding of social network structure

2019 ◽  
Author(s):  
Michael Peer ◽  
Mordechai Hayman ◽  
Bar Tamir ◽  
Shahar Arzy
Keyword(s):  
Social Network ◽  
Network Structure ◽  
Real Life ◽  
Spatial Processing ◽  
Structure Information ◽  
Social Network Structure ◽  
Structural Trait ◽  
Contrast Information ◽  
Parietal Cortices ◽  
The Brain

To successfully navigate our social world, we keep track of other individuals’ relations to ourselves and to each other. But how does the brain encode this information? To answer this question, we mined participants’ social media (FacebookTM) profiles to objectively characterize the relations between individuals in their real-life social networks. Under fMRI, participants answered questions on each of these individuals. Using representational similarity analysis, we identified social network structure coding in the default-mode network (medial prefrontal, medial parietal and lateral parietal cortices). When regressing out subjective factors (ratings of personal affiliation, appearance and personality), social network structure information was uniquely found in the retrosplenial complex, a region implicated in spatial processing. In contrast, information on individuals’ personality traits and affiliation to the subjects was found in the medial prefrontal and parietal cortices, respectively. These findings demonstrate a cortical division between representation of structural, trait-based and self-referenced social knowledge.

scholarly journals Internal Migration, Living Close to Family, and Individual Labour Market Outcomes in Spain

2022 ◽  
Vol 47 ◽  
Author(s):  
Clara H. Mulder ◽  
Isabel Palomares-Linares ◽  
Sergi Vidal
Keyword(s):  
United States ◽  
Labour Market ◽  
Western Europe ◽  
The United States ◽  
Market Outcomes ◽  
Market Participants ◽  
Mediterranean Countries ◽  
Data Limitations ◽  
Labour Market Outcomes

Migration is often viewed as a way to enhance occupational careers. However, particularly in Mediterranean countries, labour market outcomes may also depend on local family resources. We investigate how men’s and women’s labour market outcomes differ between (1) those who migrated and those who did not; and (2) those who live close to family and those who live farther away. Our main contributions are the investigation of the association between migration and labour market outcomes in a different context than the more commonly studied Northern and Western European countries and the United States, and of the role of living close to family in labour market outcomes. We used a sample of labour market participants from the “Attitudes and Expectations About Mobility” survey, conducted in Spain in 2019. Our results show that the likelihood of being a professional is greater for women who migrated than for those who did not, and that the likelihood of being unemployed or in a temporary job is lower for women who live close to family than for those who do not, but neither association was found for men. The finding for living close to family is in line with the notion that nearby family may protect women in particular from precarious labour market positions. The finding for migration differs from previous findings for Northern and Western Europe and the United States, which indicate that migration is beneficial to men in particular. This difference might be specific to a low-migration context, but data limitations prevent firm conclusions.

Gender and Labor Markets in Tunisia’s Lagging Regions

2018 ◽  
Author(s):  
Lucia Hanmer ◽  
Edinaldo Tebaldi ◽  
Dorte Verner
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Market Outcomes ◽  
Wage Discrimination ◽  
Panel Survey ◽  
Market Outcomes ◽  
Men And Women ◽  
Male And Female ◽  
Market Participants ◽  
Central Regions

There are significant differences in labor market outcomes by gender in Tunisia. These gender differences differ substantially in the richer coastal and eastern regions and the poorer southern and western regions. This chapter uses the 2014 Tunisia Labor Market Panel Survey (TLMPS) to examine the characteristics of male and female labor market participants in the lagging southern, western, and central regions, and in the leading regions. The chapter also discusses results from an econometric analysis of the factors that influence monthly wages and the probability of employment for men and women respectively. Our results show that gender plays a huge role in labor market outcomes: women are less likely to participate in the labor force, are more likely to be unemployed, and receive lower wages. In addition, youth and educated women in lagging regions are particularly disadvantaged because they are less likely to find a job and may not have the option of moving to places where employment prospects are better. Moreover, our results suggest that wage discrimination against women is prevalent outside the leading region in Tunisia.

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