The representations of chance and the financial crisis of 2008: the chance that kills

Christian Walter ()

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Abstract: If the crisis of 2008 has revealed a failure of the organizational model of finance and of the operating scheme of the funding of the economy, another failure has also existed, albeit less apparent, that of a mental model translating representations of chance into mathematical hypotheses on financial risk. The two models are linked insofar as specific mental choices about the representation of chance have led to particular organizational choices, attitudes towards uncertainty and ways of acting whose damaging consequences are precisely those that the international community has tried to remedy. It is therefore to an understanding of the role played by representations of chance in the triggering of the 2008 crisis that this appendix to this chapter invites us.

Keywords: Chance in literature; Brownian Motion; Finance Discourse; Financial Mathematics; Performativity; 2008 Financial Crisis (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ban and nep-hme
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Published in Anne Duprat; Alison James. Figures of Chance II: Chance in Theory and Practice, Routledge, pp.222-227, 2024, 9781032358659

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