Market psychology

Question 1

Main perspectives:

Answer 1

Main perspectives:
Proof psychological subject effects on aggregated layer
Emergence: super additive aggregation of individual behavior
Influence of markets/ crowds on individuals and vice versa

Question 2

Psychology of crowds:

Answer 2

Psychology of crowds: the individual loses it’s critical decision-making in crowds and behaves affective —> the crowd determines the behavior of the individual

Question 3

Theory of convergence:

Answer 3

Theory of convergence: individuals with same thinking create a group —> the individual determines The behavior of the crowd

Question 4

Wisdom of the crowd (swarm intelligence):

Answer 4

Wisdom of the crowd (swarm intelligence): the aggregated decision of the crowd is most of the time better than the decision of the individual

Question 5

Approaches on aggregated behavior:

Answer 5

Psychology of crowds

Theory of convergence

Wisdom of the crowd

Question 6

Influencing the crowds:

Answer 6

Media

Language: Sapir-Whorf Hypothesis: the grammar and the vocabulary of a language determine the art on how humans think (Bohemian vs. Shi gú). 
They also determine the used personality schemes