Relationship between language thought culture and behavioral finance

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relationship between language thought culture and behavioral finance

deviations from rational decision making that lead to cultural Keywords: Experimental and Behavioral Finance, Prospect Theory, Cultural holistic thinking. . observe a positive correlation between individualism and trading volume. Since in the investor's native language.2 The influence of culture. PDF | Behavioral finance has made important contributions to the field of investing by focusing on the cognitive and emotional cultural differences that may influence investor behavior and how these differences may tries, a higher percentage thought the behavior was because the ratio of men to women in my sample. Keywords: consciousness, culture, discourse, language, relativity, thought, Whorf Since thought and language are intimately connected, some form of close .. to the ways social norms influence social behavior (Itkonen, ). .. of any commercial or financial relationships that could be construed as a.

Language may indeed influence thought

As Levinsonp. Everett […] prefers an account in terms of the causal efficacy of culture, but no one interested in language diversity would make a simple dichotomy between language and culture: Methodologically, studies have been designed so as to attempt to tease apart the respective roles of language and other aspects of culture, for example by including speakers from languages where certain particular linguistic structures are similar, while there are many other cultural differences, e.

Indeed, in this study the participants of the two groups behaved similarly with respect to object categorization, and differently from, e. Conversely, one may test speakers from populations that are very similar culturally, and even linguistically — apart from one particularly relevant variable. In experiments of the type that have since then been used for a number of languages Levinson,it was shown that the two groups tended to solve non-linguistic spatial tasks in ways that corresponded to their linguistic preferences.

These results are important since as Pedersonp. Still these were sufficient to give rise to differences in solving apparently non-linguistic tasks. Finally, the fact that there is a debate concerning the respective causal roles of language structures and non-linguistic cultural patterns is indicative enough that the distinction is not only conceptually possible, but also empirically useful.

Ultimately, empirical evidence should be able to resolve some particular debates on this matter. For example, Ji et al. This implies that Russian and Spanish speakers should behave like the Chinese, rather than the North Americans in visual attention tasks. It is this that allows formulating contrastive predictions.

relationship between language thought culture and behavioral finance

Bloom and Keil,p. At first look, one may think that this refers to a distinction made already by Whorf However, while we argued that discourse, or actual situated language use is what has the potential to influence thought, Bloom and Keil assume that only system-level linguistic differences are worthy of being considered as interesting causes of cognitive differences.

Apparently, since discourse and the knowledge it yields are so pervasive: For example, the word quark denotes a certain class of objects hypothesized by modern physics. By means of the informational content of the term we delineate, if not establish, the concept of the basic constituent of matter. Still, Bloom and Keil discount such cognitive effects, since words like quark apparently do not constitute a systematic aspect of language.

To take the previous example, the words quark, basic, constituent and matter can be seen as systematically interrelated: To take another example: Indeed, at least two undeniably structural features of language have been argued to contribute to this: On the other hand, others have argued that such features are not the only, and possibly not the primary factors that allow language acquisition to influence social cognition. Thought then becomes verbal and speech then becomes rational.

Beckour emotions and behavior are caused by our internal dialogue.

Language and thought

We can change ourselves by learning to challenge and refute our own thoughts, especially a number of specific mistaken thought patterns called " cognitive distortions ". Cognitive therapy has been found to be effective by empirical studies.

relationship between language thought culture and behavioral finance

In behavioral economicsaccording to experiments said to support the theoretical availability heuristicpeople believe events that are more vividly described are more probable than those that are not. Simple experiments that asked people to imagine something led them to believe it to be more likely. The mere exposure effect may also be relevant to propagandistic repetition like the Big Lie.

According to prospect theorypeople make different economic choices based on how the matter is framed.

Language may indeed influence thought

Counting[ edit ] Different cultures use numbers in different ways. The Munduruku culture for example, has number words only up to five. In addition, they refer to the number 5 as "a hand" and the number 10 as "two hands".

Numbers above 10 are usually referred to as "many". In this system, quantities larger than two are referred to simply as "many". In larger quantities, "one" can also mean a small amount and "many" a larger amount. These are non-linguistic tasks that were analyzed to see if their counting system or more importantly their language affected their cognitive abilities. The results showed that they perform quite differently from, for example, an English speaking person who has a language with words for numbers more than two.

For example, they were able to represent numbers 1 and 2 accurately using their fingers but as the quantities grew larger up to 10their accuracy diminished.

Relations Between Language and Thought - Oxford Handbooks

This phenomenon is also called the "analog estimation", as numbers get bigger the estimation grows. Orientation[ edit ] Language also seems to shape how people from different cultures orient themselves in space. For instance, people from the Australian Aboriginal community Pormpuraaw define space relative to the observer. Instead of referring to location in terms like "left", "right", "back" and "forward", most Aboriginal Nations, such as the Kuuk Thaayorreuse cardinal-direction terms — north, south, east and west.

For example, speakers from such cultures would say "There is a spider on your northeast leg" or "Pass the ball to the south southwest". In fact, instead of "hello", the greeting in such cultures is "Where are you going?

relationship between language thought culture and behavioral finance

The consequence of using such language is that the speakers need to be constantly oriented in space, or they would not be able to express themselves properly, or even get past a greeting.

Speakers of such languages that rely on absolute reference frames have a much greater navigational ability and spatial knowledge compared to speakers of languages that use relative reference frames such as English. In comparison with English users, speakers of languages such as Kuuk Thaayorre are also much better at staying oriented even in unfamiliar spaces — and it is in fact their language that enables them to do this.

Linguistic relativity and the color naming debate Language may influence color processing.

relationship between language thought culture and behavioral finance

Having more names for different colors, or different shades of colors, makes it easier both for children and for adults to recognize them. Hayakawa and others, which attempted to make language more precise and objective.

It makes many basic observations of the English languageparticularly pointing out problems of abstraction and definition. General semantics is presented as both a theoretical and a practical system whose adoption can reliably alter human behavior in the direction of greater sanity. It is considered to be a branch of natural science and includes methods for the stimulation of the activities of the human cerebral cortex, which is generally judged by experimentation.

In this theory, semantics refers to the total response to events and actions, not just the words. The neurological, emotional, cognitive, semantic, and behavioral reactions to events determines the semantic response of a situation.

This reaction can be referred to as semantic response, evaluative response, or total response.

relationship between language thought culture and behavioral finance

Its proponents claim that dogmatic thinking seems to rely on "to be" language constructs, and so by removing it we may discourage dogmatism.