Professor Oberlechnerâ€™s presentation provides a psychological in-depth glimpse into information processing in the foreign exchange market, the largest financial market created in the history of mankind. Insights are based on a survey among hundreds of the ultimate decision makers in this market, i.e., foreign exchange traders, and among financial journalists working for leading financial news media. Perceiving each other as the most important information source, traders and journalists are engaged in a circular pattern of market information processing, in which the two sides of the market, i.e., trading participants and financial news services, form a highly interdependent relationship. Moreover, recent technological developments have profoundly changed the nature of reporting and the role of financial news media. For example, traders rate the speed of news and its anticipated impact on other market participants as more important than its perceived accuracy. These results prepare a surprising connection to psychological knowledge about the formation and dynamics of rumors. They also explain the importance played by rumors in financial markets, and stress psychological aspects of information and communication in financial markets.
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Thomas Oberlechner, Professor of Psychology, Webster University, Vienna
- Tuesday, 09 February 2010
- 12.15 p.m. - 1.30 p.m.
Seminar Room 2-2
Level 2, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road