Information Inertia and Limited Information Processing Capacity in Selecting Index ETFs

2021 ◽  
Author(s):  
Yizhen Xie ◽  
Darcy Pu
Keyword(s):  
Information Processing ◽  
Processing Capacity ◽  
Limited Information ◽  
Information Processing Capacity

Two cheers for bounded rationality

2000 ◽  
Vol 23 (5) ◽  
pp. 756-757 ◽  
Author(s):  
Raanan Lipshitz
Keyword(s):  
Regression Analysis ◽  
Information Processing ◽  
Rational Choice ◽  
Bounded Rationality ◽  
Processing Capacity ◽  
Limited Information ◽  
Information Processing Capacity ◽  
Simple Heuristics ◽  
Normative Status

Replacing logical coherence by effectiveness as criteria of rationality, Gigerenzer et al. show that simple heuristics can outperform comprehensive procedures (e.g., regression analysis) that overload human limited information processing capacity. Although their work casts long overdue doubt on the normative status of the Rational Choice Paradigm, their methodology leaves open its relevance as to how decisions are actually made.

scholarly journals Investor Limited Information Processing Capacity: Industry Level Analysis

2019 ◽  
Vol 8 (1) ◽  
pp. 99-112
Author(s):  
Adrian Teja
Keyword(s):  
Information Processing ◽  
Composite Index ◽  
Mining Industry ◽  
Processing Capacity ◽  
Limited Information ◽  
Monthly Data ◽  
Market Capitalization ◽  
Information Processing Capacity ◽  
Small Market ◽  
Level Analysis

Investor has cognitive limitation in the form of limited information-processing capacity relative to the amount of information available to them. This limitation force investors to optimize their valuable resources by focusing only to a specific set of information based on their unique preference. Since different industry have different information complexities, different industries will have different investor segment in terms of investor number, investor sophistication, and investor speed to gather and to comprehend information from other industry. We investigate the prevalence of investor’s limited information-processing capacity in Indonesian stock market using autoregressive model. We used monthly data from 31 December 1999 to 30 September 2015 to identify whether there are industries that consistently lead other industries. We find only mining industry return, with small market capitalization only 3.3% relative to total Jakarta Composite Index market capitalization, which consistently leads Jakarta Composite Index return for one to two months.

scholarly journals A communication model with limited information-processing capacity of recipients

2008 ◽  
Vol 24 (3) ◽  
pp. 377-405 ◽  
Author(s):  
Oleg V. Pavlov ◽  
Robert K. Plice ◽  
Nigel P. Melville
Keyword(s):  
Information Processing ◽  
Processing Capacity ◽  
Communication Model ◽  
Limited Information ◽  
Information Processing Capacity

scholarly journals Electrophysiological Measure of Impaired Information Processing in Drivers with Hematological Malignancy

2018 ◽  
Vol 2672 (37) ◽  
pp. 64-73 ◽  
Author(s):  
David E. Anderson ◽  
Vijaya R. Bhatt ◽  
Kendra Schmid ◽  
Matthew Lunning ◽  
Sarah A. Holstein ◽  
...  
Keyword(s):  
Information Processing ◽  
Visual Search ◽  
Automobile Driving ◽  
Small Sample ◽  
Processing Capacity ◽  
Brain Physiology ◽  
Brain Functions ◽  
Information Processing Capacity ◽  
Cohen’S D ◽  
Cohen's D

The broad goal of this study is to measure remote effects of cancer on brain physiology and behaviors that underpin instrumental activities of daily living such as automobile driving. Studies of hematological malignancies (HM) have demonstrated impairments in multiple brain functions shown to be critical for safe automobile driving. In the current pilot study, brain physiology during driving simulation was examined in 14 HM patients and 13 healthy comparison drivers. Electroencephalography was used to measure the eye fixation-related potential (EFRP)—a positive amplitude deflection evoked approximately 100 milliseconds after eye movement termination. Previous studies have demonstrated sensitivity of EFRP activity to information-processing capacity. All drivers completed visual search tasks to evaluate the relationship between driving-related changes in performance and EFRP activity. Results showed smaller EFRP amplitudes in drivers who had: (1) greater driving-related changes in visual search performance ( p = 0.03, Cohen’s d = 0.91); and (2) HM diagnosis ( p = 0.18, Cohen’s d = 0.54). Extending previous studies, these results provide neural evidence of reduced information-processing capacity associated with cancer diagnosis. Future large-scale studies are needed to confirm these results, given the high level of uncertainty and small sample size. This study provides a novel platform for linking changes in brain physiology and safety-critical driving behaviors.

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