Complexity and endogenous instability

Sami Al-Suwailem

Research in International Business and Finance, 2014, vol. 30, issue C, 393-410

Abstract: The global financial crisis proved the critical impact of the gap between individual rationality and group rationality. This gap is not supposed to arise in a Neoclassical world, but it frequently arises in a world as complex as ours. The paper explores how endogenous instability might arise due to such a gap, and what behavioral rules might help to mitigate its impact.

Keywords: Fallacy of composition; Empathy; n-Person Prisoner's Dilemma games; n-Person zero-sum games; Symmetry; The Golden Rule (search for similar items in EconPapers)
JEL-codes: C70 D03 D87 G01 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531912000396
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:30:y:2014:i:c:p:393-410

DOI: 10.1016/j.ribaf.2012.08.002

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().