Research by cognitive psychologists is challenging the rationality paradigm. It has started to penetrate economic\nmodeling with a vast experimental documentation of cognitive limitations that has been accumulated so far raising the\nquestions: Does behavioral decision models, which capture hope or expectation to risk in experimental settings, can\nhelp us comprehend investor behavior in financial markets.\nWe try to portrait a whole picture on the attention hypothesis we have developed around pricing patterns within\nthe innovative pharmaceuticals sector firms. We try to encompass it from several aspects: first, we lay a general\npsychological framework for Attention theory describing cognitive mechanisms such as the rule of selective attention in\nprocessing information in short-term. Second we explore financial aspects of selective attention, and last we explore real\nlife investors behavior around a major milestone within the drug development process ââ?¬â?? advisory committee milestone.\nOur findings based on 78 events dating for 2002-2014, a puzzling investors behavior. We observe that higher trading is\nheld around regulatory event in what seems like a speculative ââ?¬Å?micro bubblesââ?¬Â. In this paper, we try to portrait a whole\npicture on the attention hypothesis and merge it with these ââ?¬Å?micro bubblesââ?¬Â we assume to be in the drug development\nindustry.
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