The concept of ‘information’ is central to our understanding of financial markets, both in theory and in practice. Analysing information is not only a critical part of the activities of many financial practitioners, but also plays a central role in the Efficient Market Hypothesis (EMH). The central claim of this paper is that different data can count as information in fi-nancial markets and that particular investors do not consider all of the available data. This suggests that firstly, saying the price (...) of a stock should be $X once a particular piece of information has been incorporated in the price is only justifiable if we know that this information really is relevant for other investors. Sec-ondly, the EMH is often tested by looking at market behaviour after the release of information; again, this is only justified if we know that other market participants share the view that this is information. The purpose of this chapter is to suggest that there are good reasons for thinking that we do not know this. Finally, this chapter also suggests that bubbles in financial markets are best understood in terms of salience of information, rather than irrationality. (shrink)

The extended mind hypothesis (EMH) is the claim that the mind can and does extend beyond the human body. Adams and Aizawa (A&A) contend that arguments for EMH commit a ‘coupling constitution fallacy’. We deny that the master argument for EMH commits such a fallacy. But we think that there is an important question lurking behind A&A's allegation: under what conditions is cognition spread across a tightly coupled system? Building on some suggestions from Haugeland, we contend that the system must (...) exhibit a distinctive sort of semantic activity, semantic activity that the system as a whole takes responsibility for. (shrink)

The Extended Mind Hypothesis (EMH) needs a defence of phenomenal externalism in order to be consistent with an indispensable condition for attributing extended beliefs, concerning the conscious past endorsement of information. However, it is difficult, if not impossible, to envisage such a defence. Proponents ofthe EMH are thus confronted with a difficult dilemma: they either accept absurd attributions of belief, and thus deflate EMH, or incorporate, for compatibility reasons, the conscious past endorsement condition for extended belief attribution, implying a seemingly (...) unavailable defence of phenomenal externalism, and thus risk inconsistency within EMH. Either way, EMH is threatened. (shrink)

The extended mind hypothesis (EMH) is the claim that the mind can and does extend beyond the human body. Adams and Aizawa (A&A) contend that arguments for EMH commit a ‘coupling constitution fallacy’. We deny that the master argument for EMH commits such a fallacy. But we think that there is an important question lurking behind A&A's allegation: under what conditions is cognition spread across a tightly coupled system? Building on some suggestions from Haugeland, we contend that the system must (...) exhibit a distinctive sort of semantic activity, semantic activity that the system as a whole takes responsibility for. (shrink)

Neil Levy offers the most prominent moral principles that are specifically and exclusively designed to apply to neuroethics. His two closely related principles, labeled as versions of the ethical parity principle , are intended to resolve moral concerns about neurological modification and enhancement [1]. Though EPP is appealing and potentially illuminating, we reject the first version and substantially modify the second. Since his first principle, called EPP , is dependent on the contention that the mind literally extends into external props (...) such as paper notebooks and electronic devices, we begin with an examination of the extended mind hypothesis and its use in Levy’s EPP . We argue against reliance on EMH as support for EPP . We turn to his second principle, EPP , which is not dependent on EMH but is tied to the acceptable claim that the mind is embedded in, because dependent on, external props. As a result of our critique of EPP , we develop a modified version of EPP , which we argue is more acceptable than Levy’s principle. Finally, we evaluate the applicability of our version of EPP. (shrink)

A new position in the philosophy of mind has recently appeared: the extended mind hypothesis (EMH). Some of its proponents think the EMH, which says that a subject's mental states can extend into the local environment, shows that internalism is false. I argue that this is wrong. The EMH does not refute internalism; in fact, it necessarily does not do so. The popular assumption that the EMH spells trouble for internalists is premised on a bad characterization of the internalist thesis—albeit (...) one that most internalists have adhered to. I show that internalism is entirely compatible with the EMH. This view should prompt us to reconsider the characterization of internalism, and in conclusion I make some brief remarks about how that project might proceed. (shrink)

de Bruin et al. (The Stanford Encyclopedia of Philosophy, Stanford University, Stanford, 2018) write that it is a philosophically interesting question “whether there is such a thing as an 'intrinsic' value of financial assets” noting that the calculation of any intrinsic price will depend, in part, on subjective elements. McCauley suggest that there are at least five different notions of the ‘true value’ of an asset in finance theory, and argues, consistent with de Bruin et al. that in many cases (...) the calculation of such values “makes impossible information demands on our knowledge of future dividends and returns”. This paper explores some of the subjective elements involved in calculating the intrinsic value of an asset, and their implications for the Law of One Price. The Law of One Price states that investors should not pay different prices for the same investment. Consequently, the existence, and persistence, of arbitrage opportunities is often attributed to investor irrationality. However, if subjectivity is involved in the calculation of intrinsic value then two investors can, rationally, disagree about the value of a security. This implies that arbitrage opportunities may not always be instances of irrationality, or genuine mispricing, but reflect different investors perceptions of the security. In economics, value is taken to be subjective, and Postigo describes how goods have value because of the role they play in the satisfaction of our needs. By applying this to finance, this paper will argue that a security can play a number of roles in a portfolio, depending on an investor's strategy. Given these different roles, different investors will be working with different data in their assessment of intrinsic value. In order to establish that an arbitrage opportunity exists it is therefore necessary to understand what information is relevant to pricing the investment in different locations, or markets. It may, in fact, be the case that the same security can trade at different prices because different investors do not see it as the ‘same thing’ at all. This analysis can also be used to throw doubt on the emphasis that fundamental analysis receives in discussions of rationality. (shrink)

The thought that empathy plays an important role in moral motivation is almost a platitude of contemporary folk psychology. Parallel themes were mooted in German moral philosophy and aesthetics in the 1700s, and versions of the empathy construct remained prominent in continental accounts of moral motivation through the nineteenth century and early twentieth centuries. This chapter elucidates the Empathic Motivation Hypothesis (EMH) and sets out some of the conceptual and empirical challenges it faces. It distinguishes empathic concern from other dimensions (...) of empathy (e.g., resonance, attunement, distress, and non-empathic concern) and examines the merits of EMH as a developmental thesis, focusing on evidence from psychopathology and attachment theory. (shrink)

The view from inside improves our understanding on market failure and regulation failure in financial market. The EMH fails to understand the causes of financial bubbles and crashes. Behavioral finance introduces insight from psychology. The heuristic and biases approach studied behavioral asymmetry in static environment that leads to market irrationality and information distortion. The fast and frugal thinking in decision-making further explore more complex situation under changing environment. They argue that soft-paternalistic regulation is needed under information overload. The most critical (...) issue is information uncertainty and complexity. Lacking information in frequency domain is the main barrier in managing business cycles. Data form inside reveals current limitations of financial data mainly in the short-term price changes. Microstructure studies show that pricing process is shaped by trading rules. Quantitative analysis reveals severe instability in high frequency trading and derivative market. Feasible regulation should aim to encourage new technology and sustainable growth, rather than protect obsolete technology and short-term speculation. The most fundamental challenge to sustainable economic order is the excessive size of the derivative markets that crowding out investment in real economy. This is a more severe issue than the climate change. (shrink)

Humans are individuals qua objects, organisms and, putatively, minds. We are also social animals. We tend to value self-rule—i.e., the possession and exercise of the capacity or capacities that allow individuals to govern their lives. However, our sociality can call the possibility and value of such autonomy into question. The more we seem to be social animals, the less we seem to be capable of running our own lives. Empirical psychology has revealed surprising details about the extent to which our (...) minds are subject to social influence. Such influence is sometimes taken as a threat to self-rule. The debate over the Extended Mind Hypothesis (EMH) might seem to exacerbate the social threat to self-rule. If minds are spread across individuals, perhaps it no longer makes sense to speak of individual selves who may or may not rule themselves. I argue that no general threat to self-rule stems from human sociality. Further, the adoption of EMH is consistent with extensive attribution of psychological states to individuals, thus vouchsafing individual selves and autonomy. (shrink)

Recent works in philosophy of mind and the cognitive sciences draw an “unconventional” picture of cognitive processes and of the mind. Instead of conceiving of cognition as a process that takes place within the boundaries of the skull and the skin, some contemporary theories claim that cognition is a situated process that encompasses the human agent’s boundaries. In particular, the Extended Mind Hypothesis (EMH) and the Enactive approach to cognition claim that embodied action is constitutive of cognitive processes, and thus (...) of the mind. Although both theories give an “extended” or “extensive” picture of cognition and of the mind, they disagree on the epistemic value of internal representations. The EMH claims that we need to posit internal action- oriented representations (AORs). AORs would account for action-selection, action-control, and for the prediction of incoming perceptual information. The enactive approach to cognition argues against AORs. The concept of AOR does not fulfill the representational conditions necessary to talk about representations properly. Furthermore, AORs are expressive of an internalistic prejudice, which makes the EMH weak. Moreover, a semiotic analysis of AORs shows that these items called “representations” are not active at all. Therefore, the epistemic posit of AOR plays no interesting job in the project of extending the mind in virtue of a reassessment of the concept of representation aimed at making it embodied and active. Therefore I claim that the concept of AOR has to be rejected. Action- control, action-selection, and the anticipation of aspects of action-perception loops can be explained in a more enactive way. Embodied action in a field of affordances explains how agents respond selectively to environmental features and how action-perception loops are anticipated by the “affective agent”. Furthermore, the enactive approach to cognition - especially if coupled with a semiotic description of cognitive niches and with some insights from the affective sciences (e.g. appraisal of core relational themes) - gives an explanation of action that, in contrast to the EMH, is actually able to “extend the mind”. (shrink)

In recent studies, numerous anomalies against the weak and semi-strong-forms of efficient market hypothesis have been found insignificant after controlling the small-firm effect. We investigate whether the insider trading anomaly, a major anomaly against the strong-form of EMH, can survive after excluding small firms with a novel data set and document several new findings. We find a substantially larger number of insider purchases than sales, while the average volume of insider sales is much higher than the average volume of insider (...) purchases. Echoing recent US studies, we find that insider sales generate more abnormal returns than insider purchases do. We find much lower abnormal returns from insider trading than documented in the literature and the associated trading costs, which suggests that the market efficiency of individual stocks may depend on their sizes, and even the strong-form of EMH holds to a larger extent than previously recognized. (shrink)

Bone marrow is the main site for hematopoiesis in adults. It acts as a niche for hematopoietic stem cells (HSCs) and contains non‐hematopoietic cells that contribute to stem cell dormancy, quiescence, self‐renewal, and differentiation. HSC also exist in resting spleen of several species, although their contribution to hematopoiesis under steady‐state conditions is unknown. The spleen can however undergo extramedullary hematopoiesis (EMH) triggered by physiological stress or disease. With the loss of bone marrow niches in aging and disease, the spleen as (...) an alternative tissue site for hematopoiesis is an important consideration for future therapy, particularly during HSC transplantation. In terms of harnessing the spleen as a site for hematopoiesis, here the remarkable regenerative capacity of the spleen is considered with a view to forming additional or ectopic spleen tissue through cell engraftment. Studies in mice indicate the potential for such grafts to support the influx of hematopoietic cells leading to the development of normal spleen architecture. An important goal will be the formation of functional ectopic spleen tissue as an aid to hematopoietic recovery following clinical treatments that impact bone marrow. For example, expansion or replacement of niches could be considered where myeloablation ahead of HSC transplantation compromises treatment outcomes. (shrink)