Rumors and stable-cause attribution in prediction and behavior

DiFonzo, Nicholas and Bordia, Prashant (2002) Rumors and stable-cause attribution in prediction and behavior. Organizational Behavior And Human Decision Processes, 88 2: 785-800. doi:10.1016/S0749-5978(02)00016-X


Author DiFonzo, Nicholas
Bordia, Prashant
Title Rumors and stable-cause attribution in prediction and behavior
Journal name Organizational Behavior And Human Decision Processes   Check publisher's open access policy
ISSN 0749-5978
1095-9920
Publication date 2002-07
Sub-type Article (original research)
DOI 10.1016/S0749-5978(02)00016-X
Volume 88
Issue 2
Start page 785
End page 800
Total pages 16
Place of publication New York ; London
Publisher Academic Press
Collection year 2002
Language eng
Subject C1
380108 Industrial and Organisational Psychology
Abstract Two stock-market simulation experiments investigated the notion that rumors that invoke stable-cause attributions spawn illusory associations and less regressive predictions and behavior. In Study 1, illusory perceptions of association and stable causation (rumors caused price changes on the day after they appeared) existed despite rigorous conditions of nonassociation (price changes were unrelated to rumors). Predictions (recent price trends will continue) and trading behavior (departures from a strong buy-low-sell-high strategy) were both anti-regressive. In Study 2, stability of attribution was manipulated via a computerized tutorial. Participants taught to view price-changes as caused by stable forces predicted less regressively and departed more from buy-low-sell-high trading patterns than those taught to perceive changes as caused by unstable forces. Results inform a social cognitive and decision theoretic understanding of rumor by integrating it with causal attribution, covariation detection, and prediction theory. (C) 2002 Elsevier Science (USA). All rights reserved.
Keyword Psychology, Applied
Management
Psychology, Social
Stock-market
Information
Strategies
Sequences
Salience
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Psychology Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 11 times in Thomson Reuters Web of Science Article | Citations
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Created: Tue, 14 Aug 2007, 18:18:58 EST