This is exactly the sot of thing that investors need tio stay on guard against: filter bubble.

These are the search results, commentaries, recommendations, and other online data that have been filtered to match your predisposition, biases, and interests. Thus, they prevent you from seeing any data that challenges your assumptions, beliefs or positions.

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Example Citations:

Those same kind of surprises don’t seem to happen to me the same way with online information. In the digital world, I find myself tending toward existing in a self-selected filter bubble. It’s the difference between getting too much of what I like and not enough of what I need.
—Kevin Griffin, “Front: Your Former Vancouver Art Magazine,” The Vancouver Sun, June 24, 2011
The real danger, right now, is losing engagement due to people finding themselves in a filter bubble, where people are never challenged by viewpoints that oppose what they already think.
—Duncan Geere, “Clicktivism’s assault on dictators, politics and NGOs,” Wired UK, June 23, 2011
Earliest Citation:
Eli terms this phenomenon a “filter bubble” — a special sort of echo chamber. The better our filters get, the less likely we are to be exposed to something novel, unexpected, or uncomfortable.
—Ethan Zuckerman, “Eli Pariser on Filter Bubbles,” My heart’s in Accra,” June 3, 2010

Category: Apprenticed Investor, Psychology, Web/Tech

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “Phrase of the Day: “Filter Bubble””

  1. FS says:

    Good point and it’s more than just investors. As a group, me included, this country tends to listen, view, and mentally reside where we are comfortable and have become so polarized that I can’t believe it’s going to end well.
    My liberal friends watch cnn and cbs, and listen to npr. My conservative friends listen/view fox’s broadcasting.

    I try to come here as often as possible because br is a lefty, but a smart one (put your oxymoron jokes aside). I used to love politics because it was mentally challenging to listen to the other side and compromise in a joint effort. I now fear politics because of where it is taking us.

  2. mathman says:

    Some interesting things going on:

    a) It looks like we’re up to 6 wars now:
    http://www.guardian.co.uk/world/2011/jun/30/us-drone-strikes-somalia

    b) Jimmy Kimmel (you discerning voters may appreciate this):
    http://videocafe.crooksandliars.com/david/jimmy-kimmel-reveals-michele-bachmanns-story

    c) Turley on the debt ceiling:
    http://current.com/shows/countdown/videos/turley-what-congress-asked-me

  3. I hate the filters. Especially on news sites.

  4. opensourcecurrency says:

    I find listening to a Rush Limbaugh a complete waste of time and an exercise in frustration. Even if I found something he blabbered reasonable at first blush, I’d probably find out later that it was the usual bullshit. This doctrine has limits. I do try to avoid filters as much as I can and direct my own searches.

    OT: I hope you cover the BAC “Settlement” [no case was ever filed, so it's actually just an agreement, despite the title] as you did the GSE one. Especially the NYFed angle, as Bernanke has testified that the Fed hasn’t lost any money for the taxpayer.

  5. Francisco Bandres de Abarca says:

    What I am able to acknowledge is the mere fact that I tend to be correct about nearly every topic which I ponder, and so I merely need to seek out those opinions which confirm my assertions. And if that requires that I inhabit a virtual room full of poor fools who suffer from echolalia, well then, so be it!

  6. MarketMadness says:

    Excellent TED Talk video about this subject.

    http://www.thefilterbubble.com/ted-talk

  7. and, from the dude, his ownself..

    http://www.booktv.org/Program/12551/After+Words+Eli+Pariser+The+Filter+Bubble+What+the+Internet+is+Hiding+From+You+hosted+by+Clay+Shirky.aspx

    About the Program

    In “The Filter Bubble,” Eli Pariser argues that corporations are undermining the original intent for the internet by personalizing the information available to each user. Mr. Pariser discusses how the process of personalization evolved and the need to reverse it with author Clay Shirky, a professor at New York University’s Interactive Telecommunications Program.

    About the Authors
    Eli Pariser

    Mr. Pariser is the former executive director of MoveOn.org and a co-founder of Avaaz.org. Mr. Pariser is also a senior fellow at the Roosevelt Institute.

    Future Airings
    Saturday, July 2nd at 10pm (ET)
    Sunday, July 3rd at 9pm (ET)
    Monday, July 4th at 3am (ET)
    Sunday, July 10th at 12pm (ET)

  8. lunartop says:

    Hey I posted about this in you reading list!

  9. scottsabol says:

    Its still amazing to me that most people don’t believe that the psychological affects such as ‘cognative dissonance”, “disconfirmation bias”, “the recency effect/bias” and the “filter bubble”.

    You try to explain these to people and two things happen: They believe that is doesn’t pertain to them and then they look at you as some academic elitist who knows everything.

    Bottom line: Human nature is stubborn

  10. WaveCatcher says:

    What “Filter Bubble?” I only seek out contrary opinions so this article didn’t even register on my thought radar.