A Conceptual Model of Investor Behavior

Based on a survey of behavioral finance literature, this paper presents a descriptive model of individual investor behavior in which investment decisions are seen as an iterative process of interactions between the investor and the investment environment. This investment process is influenced by a number of interdependent variables and driven by dual mental systems, the interplay of which contributes to boundedly rational behavior where investors use various heuristics and may exhibit behavioral biases. In the modeling tradition of cognitive science and intelligent systems, the investor is seen as a learning, adapting, and evolving entity that perceives the environment, processes information, acts upon it, and updates his or her internal states. This conceptual model can be used to build stylized representations of (classes of) individual investors, and further studied using the paradigm of agent-based artificial financial markets. By allowing us to implement individual investor behavior, to choose various market mechanisms, and to analyze the obtained asset prices, agent-based models can bridge the gap between the micro level of individual investor behavior and the macro level of aggregate market phenomena. It has been recognized, yet not fully explored, that these models could be used as a tool to generate or test various behavioral hypothesis.behavioral finance;financial decision making;agent-based artificial financial markets;cognitive modeling;investor behavior

Personality and media multitasking in the college classroom: Context-dependent implications of conscientiousness and agreeableness

Both personality and contexts may account for media multitasking in the college classroom. As this area of research was lacking, the present study examined which personality traits would be associated with in-class media multitasking in different contexts of text messaging. Undergraduate students (83 males and 65 females; average age: 20.0 [SD = 4.3]) completed a questionnaire on demographic characteristics, general text-messaging behavior, and Big Five personality traits as well as a delay-discounting task. This task had two hypothetical scenarios in which participants received either an urgent text message from their significant other (Significant Other condition) or a non-urgent message from a casual friend (Casual Friend condition), and they rated their likelihood of immediately replying to the message during the class versus waiting to reply until the class was over. For each of the conditions, hierarchical regression analyses were conducted to examine whether personality traits predicted the likelihood of waiting, after controlling for demographic characteristics and general text-messaging behavior. Whereas only conscientiousness independently predicted the likelihood of waiting in the Significant Other condition (β = .20, p = .033), only agreeableness independently predicted the likelihood in the Casual Friend condition (β = .27, p = .002). These findings contribute to the sparse literature on links of personality traits and in-class media multitasking by highlighting the possible context-dependent aspects of these links. The findings also indicate potential directions of future research including exploring approaches to reducing media multitasking in the college classroom while taking both personality and specific contexts into consideration

Impatience, Incentives, and Obesity

This paper explores the relationship between time preferences, economic incentives, and body mass index (BMI). Using data from the 1979 cohort of the National Longitudinal Survey of Youth, we first show that greater impatience increases BMI even after controlling for demographic, human capital, and occupational characteristics as well as income and risk preference. Next, we provide evidence of an interaction effect between time preference and food prices, with cheaper food leading to the largest weight gains among those exhibiting the most impatience. The interaction of changing economic incentives with heterogeneous discounting may help explain why increases in BMI have been concentrated amongst the right tail of the distribution, where the health consequences are especially severe. Lastly, we model time-inconsistent preferences by computing individualsquasi-hyperbolic discounting parameters (β and δ). Both long-run patience (δ) and present-bias (β) predict BMI, suggesting obesity is partly attributable to rational intertemporal tradeoffs but also partly to time inconsistency.

Conative Dysfunction in Schizophrenia: A New Empirically-Derived Framework

Conative dysfunction, defined as deficits in performing motivated or volitional action leading to the functional outcome of reduced goal-directed activity (RGDA), is explored as a fundamental and highly impairing aspect of schizophrenia. It is proposed that conative dysfunction is multifaceted and may take different forms within different individuals. Although many such factors have already been studied in schizophrenia, this has been done in a piecemeal fashion, not permitting comparisons among multiple forms of conative dysfunction to determine which ones are most impacted by the disorder or which may cluster within individuals. Thus, the heterogeneity and interrelationships between these factors has not been adequately assessed. A broad range of motivational and volitional tests, representing aspects of conative functioning drawn from a variety of fields including personality, neuropsychology, motivational psychology and psychopathology are administered to a sample of schizophrenia outpatients. Several of these have not previously been examined in the context of schizophrenia. Three research questions are addressed, including; 1) whether distinct conative “types,” characterized by separable dysfunctions, exist; 2) whether some conative functions are more impacted than others in schizophrenia, and whether this depends upon the between-individual variability addressed in question one; and 3) which conative factors are most predictive of poor functional outcomes (i.e., RGDA) in schizophrenia. These questions are addressed via 1) cluster analysis, 2) a series of profile analyses, and 3) a series of regression analyses. Findings support the existence of two distinct patterns of conative dysfunction within schizophrenia, each associated with a set of specific characteristics. One cluster is characterized by difficulty energizing (an executive function subserved by the superior medial prefrontal cortex) and reduced reward sensitivity, while the other is characterized by increased punishment sensitivity, boredom proneness, and various self-reported cognitive, volitional and emotional pathologies, in the context of intact motivation. Distinct aspects of conative dysfunction in each cluster contribute significantly to RGDA, especially boredom propensity, reward sensitivity, intrinsic motivation, and various executive functions. Comparisons are drawn between each cluster and existing clinical typologies. Implications of each of these findings for future research, clinical assessment and intervention are discussed

Ethical perspectives on advances in biogerontology

Worldwide populations are aging with economic development as a result of public health initiatives and advances in therapeutic discoveries. Since 1850, life expectancy has advanced by 1 year for every four. Accompanying this change is the rapid development of anti‐aging science. There are three schools of thought in the field of aging science. One perspective is the life course approach, which considers that aging is a good and natural process to be embraced as a necessary and positive aspect of life, where the aim is to improve the quality of existing lifespan and “compress” morbidity. Another view is that aging is undesirable, and that rejuvenation and indeed immortality are possible since the biological basis of aging is understood, and therefore, strategies are possible for engineering negligible senescence. Finally, a hybrid approach is that life span can be extended by anti‐aging medicines but with uncertain effects on health. While these advances offer much promise, the ethical perspectives are seldom discussed in cross‐disciplinary settings. This article discusses some of the key ethical issues arising from recent advances in biogerontology

The Economics and Psychology of Personality Traits

This paper explores the interface between personality psychology andeconomics. We examine the predictive power of personality and the stability ofpersonality traits over the life cycle. We develop simple analytical frameworksfor interpreting the evidence in personality psychology and suggest promisingavenues for future research.education, training and the labour market;

The Economics and Psychology of Personality Traits

This paper explores the interface between personality psychology and economics. We examine the predictive power of personality and the stability of personality traits over the life cycle. We develop simple analytical frameworks for interpreting the evidence in personality psychology and suggest promising avenues for future research.lifecycle effects, personality traits