Characterize Investor Attention on the Social Web

Printer-friendly version

Authors:Xian Li & Jim Hendler


We study the allocation problem of investor attention, the scarce and important economic resource in the information era, through practitioners' tweeting behaviors. We develop formalisms of "cognitive niches", interplays between heuristics from adaptive cognitive control, to account for the selectivity of investor attention. Using asset-specific tweets as direct measures of investor attention allocation, we find evidence supporting contextual utilizations of these cognitive control strategies, depending on types of asset, investors' experience as well as investing philosophy. We demonstrate that as a result of adaptive cognitive control, investor attention can be different by nature. Such distinction is not captured by traditional indirect measures of investor attention, but reveals different implications for assets' short-term volatilities.


DateCreated ByLink
December 24, 2013
Patrick WestDownload

Related Projects:

EAGER Project LogoEAGER: Semantic Search (EAGER)
Principal Investigator: Jim Hendler
Description: NSF EAGER project to explore advanced semantic technology for data search.

Related Research Areas:

Social Web
Lead Professor: Jim Hendler
Description: Social Web