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How “Point Blindness” Dilutes the Value of Stock Market Reports

Arthur Lupia (), Cassandra Grafstrom, Yanna Krupnikov, Adam Seth Levine, William MacMillan () and Erin McGovern

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: stock market; stock index; financial reporting; news; real nominal relations (search for similar items in EconPapers)
JEL-codes: D80 G00 H30 (search for similar items in EconPapers)
Date: 2008-03-24
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Related works:
Working Paper: How “Point Blindness” Dilutes the Value of Stock Market Reports (2008) Downloads
Working Paper: How “Point Blindness” Dilutes the Value of Stock Market Reports (2008) Downloads
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