Are investors guided by the news disclosed by companies or by journalists?

Most previous studies demonstrating the influential role of the textual information released by the media on stock market performance have concentrated on earnings-related disclosures. By contrast, this paper focuses on disposal announcements, so that the impacts of listed companies’ announcements and journalists’ stories can be compared concerning the same events. Consistent with previous findings, negative words, rather than those expressing other types of sentiment, statistically significantly affect adjusted returns and detrended trading volumes. However, extending previous studies, the results of this paper indicate that shareholders’ decisions are mainly guided by the negative sentiment in listed companies’ announcements rather than that in journalists’ stories. Furthermore, this effect is restricted to the announcement day. The average market reaction–measured by adjusted returns–is inversely related only when the announcements are ignored by the media, but the dispersion of market reaction–measured by detrended trading volume–is positively affected only when announcements are followed up by journalists.

An experiment on energy-saving competition with socially responsible consumers: opening the black box

We present results from experimental price-setting oligopolies in which green firms undertake different levels of energy-saving investments motivated by public subsidies and demand-side advantages. We find that consumers reveal higher willingness to pay for greener sellers’ products. This observation in conjunction to the fact that greener sellers set higher prices is compatible with the use and interpretation of energy-saving behaviour as a differentiation strategy. However, sellers do not exploit the resulting advantage through sufficiently high price-cost margins, because they seem trapped into “run to stay still” competition. Regarding the use of public subsidies to energy-saving sellers we uncover an undesirable crowding-out effect of consumers’ intrinsic tendency to support green manufacturers. Namely, consumers may be less willing to support a green seller whose energy-saving strategy yields a direct financial benefit. Finally, we disentangle two alternative motivations for consumer’s attractions to pro-social firms; first, the self-interested recognition of the firm’s contribution to the public and private welfare and, second, the need to compensate a firm for the cost entailed in each pro-social action. Our results show the prevalence of the former over the latter.

Enhancing prospective memory in mild cognitive impairment: the role of enactment

Prospective memory (PM) is a fundamental requirement for independent living which might be prematurely compromised in the neurodegenerative process, namely in mild cognitive impairment (MCI), a typical prodromal Alzheimer's disease (AD) phase. Most encoding manipulations that typically enhance learning in healthy adults are of minimal benefit to AD patients. However, there is some indication that these can display a recall advantage when encoding is accompanied by the physical enactment of the material. The aim of this study was to explore the potential benefits of enactment at encoding and cue-action relatedness on memory for intentions in MCI patients and healthy controls using a behavioral PM experimental paradigm. Method: We report findings examining the influence of enactment at encoding for PM performance in MCI patients and education-matched controls using a laboratory-based PM task with a factorial independent design. Results: PM performance was consistently superior when physical enactment was used at encoding and when target-action pairs were strongly associated. Importantly, these beneficial effects were cumulative and observable across both a healthy and a cognitively impaired lifespan as well as evident in the perceived subjective difficulty in performing the task. Conclusions: The identified beneficial effects of enacted encoding and semantic relatedness have unveiled the potential contribution of this encoding technique to optimize attentional demands through an adaptive allocation of resources strategies. We discuss our findings with respect to their potential impact on developing strategies to improve PM in AD sufferers.

PRESENTATION. Experimental and behavioral economics. Theory, tools and topics

This note presents the special issue on Experimental and Behavioral Economics. The volume includes some recent contributions from these correlated disciplines –empirical the former and theoretical the latter– and their potential contribution to the intersection of Economics with Psychology and Sociology. The project “El papel de la comparación social en las decisiones económicas bajo incertidumbre” (Junta de Andalucía, P07-SEJ-03155)” provided us with inspiration and financial support to publish this volume.

An experimental comparison between rival theories of rapid automatized naming performance and its relationship to reading

Two studies investigated the degree to which the relationship between rapid automatized naming (RAN) performance and reading development is driven by shared phonological processes. Study 1 assessed RAN, phonological awareness, and reading performance in 1010 7- to -10 year-olds. Results showed that RAN deficits occurred in the absence of phonological awareness deficits. These were accompanied by modest reading delays. In structural equation modeling, solutions where RAN was subsumed within a phonological processing factor did not provide a good fit to the data, suggesting that processes outside phonology may drive RAN performance and its association with reading. Study 2 investigated Kail’s proposal that speed of processing underlies this relationship. Children with single RAN deficits showed slower speed of processing than did closely matched controls performing normally on RAN. However, regression analysis revealed that RAN made a unique contribution to reading even after accounting for processing speed. Theoretical implications are discussed.

Assimilation and contrast to group primes: the moderating role of ingroup identification

This research examined the conditions under which behavioral contrast would be observed in relation to ingroup and outgroup primes. The authors tested the hypothesis that differing levels of commitment to the ingroup would predict diverging behavioral responses to outgroup but not ingroup primes. Across two studies, featuring both age and gender groups, we found that ingroup identification predicted responses to outgroup primes with higher identifiers showing an increased tendency to contrast, that is, behave less like the outgroup, and more like the ingroup. Ingroup identification did not predict responses to ingroup primes. The implications of these findings for social comparison and social identity theories are discussed. (c) 2007 Elsevier Inc. All rights reserved.

A little learning is a dangerous thing: an experimental demonstration of ignorance-driven inference

Studies of ignorance-driven decision making have been employed to analyse when ignorance should prove advantageous on theoretical grounds or else they have been employed to examine whether human behaviour is consistent with an ignorance-driven inference strategy (e. g., the recognition heuristic). In the current study we examine whether-under conditions where such inferences might be expected-the advantages that theoretical analyses predict are evident in human performance data. A single experiment shows that, when asked to make relative wealth judgements, participants reliably use recognition as a basis for their judgements. Their wealth judgements under these conditions are reliably more accurate when some of the target names are unknown than when participants recognize all of the names (a "less-is-more effect"). These results are consistent across a number of variations: the number of options given to participants and the nature of the wealth judgement. A basic model of recognition-based inference predicts these effects.

An fMRI study of parietal cortex involvement in the visual guidance of locomotion

Locomoting through the environment typically involves anticipating impending changes in heading trajectory in addition to maintaining the current direction of travel. We explored the neural systems involved in the “far road” and “near road” mechanisms proposed by Land and Horwood (1995) using simulated forward or backward travel where participants were required to gauge their current direction of travel (rather than directly control it). During forward egomotion, the distant road edges provided future path information, which participants used to improve their heading judgments. During backward egomotion, the road edges did not enhance performance because they no longer provided prospective information. This behavioral dissociation was reflected at the neural level, where only simulated forward travel increased activation in a region of the superior parietal lobe and the medial intraparietal sulcus. Providing only near road information during a forward heading judgment task resulted in activation in the motion complex. We propose a complementary role for the posterior parietal cortex and motion complex in detecting future path information and maintaining current lane positioning, respectively. (PsycINFO Database Record (c) 2010 APA, all rights reserved)

Motivating farmers: insights from social psychology

We are social beings. What we do and don’t do, what we think, the decisions we take are all influenced by those around us. Sometimes we are conscious of those influences, often we are not. Those who influence us are not just our close family and friends, our own social and professional networks, but the wider societies and cultures to which we belong. The goals we espouse, the values we hold, the image we have of ourselves are all molded to a large extent by our interactions and relationships with other people. The social sciences offer a range of concepts and tools for exploring these influences. In this paper, I introduce some of these and illustrate them with recent research I and my colleagues have been doing at the University of Reading among livestock farmers in the UK, with a view to providing insights that can then be used to plan and implement more effective interventions.