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Over a decade ago, Richard Dawkins coined the term "meme" for a unit of culture that is transmitted via imitation and naturally "selected" by popularity or longevity. Dawkins used memes to show that the theory known as Universal Darwinism, according to which "all life evolves by the differential survival of replicating entities," applies to more than just genes.
There are several fascinating conclusions, some of which can easily be applied in a financial markets context; one of which is the ability to predict that ideas will spread not because they are "good ideas", but because they contain "good memes" such as danger, food and sex that push our evolutionary buttons and force us to pay attention to them.
From the Wikipedia definition
So with memes, some ideas will propagate less successfully and become extinct, while others will survive, spread, and, for better or for worse, mutate. Memeticists argue that the memes most beneficial to their hosts will not necessarily survive; rather, those memes that replicate the most effectively spread best, which allows for the possibility that successful memes may prove detrimental to their hosts.
Memes do not always get copied perfectly, and might indeed become refined, combined or otherwise modified with other ideas, resulting in new memes. These memes may themselves prove more (or less) efficient replicators than their predecessors
Memetics, however, excels in explaining the spread of certain value-judgements ("chastity is important"), preferences ("pork is repulsive"), superstitions ("black cats bring bad luck") and other scientifically unverifiable beliefs ("'X' is the one true God");
The term memetic association refers to the idea that memes herd. For example, a meme for blue jeans includes memes for trouser-flies, riveted clothing, blue dye, cotton clothing, belt-loops and double-sewn seams. In this way, groups of memes can operate symbiotically (to use a biological analogy) in the sense that they act for their mutual benefit/survival.
Memes have as an important characteristic their propagation through imitation, a concept introduced by the French sociologist Gabriel Tarde. Imitation involves copying the observed behaviour of another individual. Typically imitators copy behaviour from observing other humans, but they may also copy from an inanimate source, such as from a book or from a musical score. Imitation may depend on brains sufficiently powerful to assess the key aspects of the imitated behavior (what to copy and why) as well as its potential benefits.
Researchers have observed memetic copying in just a few species on Earth, including hominids, dolphins and birds (which learn how to sing by imitating their parents).
Even if one accepts the memetic description, it still remains to single out which memes have good potential for spreading.
Karl Popper advocated memetic caution in the strongest possible terms: "The survival value of intelligence is that it allows us to extinct a bad idea, before the idea extincts us."
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