Lupia, Arthur and Grafstrom, Cassandra and Krupnikov, Yanna and Levine, Adam Seth and MacMillan, William and McGovern, Erin (2008): How “Point Blindness” Dilutes the Value of Stock Market Reports.
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The stock index “point” is a focal component of financial news reports. Though many reports draw attention to point changes in major indices, few people realize that the value of a stock index “point” changes frequently. We call this perceptual phenomenon “point blindness.” We examine causes of point blindness and then propose alternate ways of reporting stock market information to counter it. The alternatives are easy to implement and can help citizens draw important inferences about stock values. An experiment shows that alternate modes of presentation have significant effects on public perceptions of the stock market.
|Item Type:||MPRA Paper|
|Original Title:||How “Point Blindness” Dilutes the Value of Stock Market Reports|
|Keywords:||stock market; stock index; financial reporting; news; real nominal relations|
|Subjects:||H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General
G - Financial Economics > G0 - General > G00 - General
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General
|Depositing User:||Arthur Lupia|
|Date Deposited:||10. Apr 2008 05:41|
|Last Modified:||12. Feb 2013 10:27|
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