Moral imagination or heuristic toolbox? Events and the risk assessment of structured financial products in the financial bubble
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
Business Ethics 20 (2):148-158 (2011)
The paper uses the example of the failure of bankers and financial managers to understand the risks of dealing in structured financial products, before the financial collapse, to investigate how people respond to crises. It focuses on whether crises cause people to challenge their habitual frames by the application of moral imagination. It is proposed that the structure of financial products and their markets triggered the use of heuristics that contributed to the underestimation of risks. It is further proposed that such framing heuristics are highly specialised to specific contexts and are part of a wider set of heuristics that people carry in their cognitive ‘adaptive toolboxes’. Consequently, it is argued, when a crisis occurs, the heuristics are not challenged, but are simply put away, and other more appropriate heuristics are put to use until a sense of normality returns, and the use of the old heuristics is resumed
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Daniel Kahneman, Paul Slovic & Amos Tversky (eds.) (1982). Judgment Under Uncertainty: Heuristics and Biases. Cambridge University Press.
Gerd Gigerenzer (1999). Simple Heuristics That Make Us Smart. Oxford University Press.
Michael Billig (1995). Arguing and Thinking: A Rhetorical Approach to Social Psychology. Philosophy and Rhetoric 28 (1):83-86.
Citations of this work BETA
No citations found.
Similar books and articles
Lisa Warenski (2012). Relative Uncertainty in Term Loan Projection Models: What Lenders Could Tell Risk Managers. Journal of Experimental and Artificial Intelligence 24 (4):501-511.
Oswald Huber (2000). What's in the Adaptive Toolbox: Global Heuristics or More Elementary Components? Behavioral and Brain Sciences 23 (5):755-755.
Cass R. Sunstein (2005). Moral Heuristics. Behavioral and Brain Sciences 28 (4):531-542.
Roger Berkowitz & Taun N. Toay (eds.) (2013). The Intellectual Origins of the Global Financial Crisis. Fordham University Press.
Joseph A. Petrick (2011). Sustainable Stakeholder Capitalism: A Moral Vision of Responsible Global Financial Risk Management. [REVIEW] Journal of Business Ethics 99 (S1):93-109.
M. van Dijk (2000). The Influence of Publication of Financial Statements, Risk of Takeover and Financial Position of the Auditee on Public Auditors' Unethical Behaviour. Journal of Business Ethics 28 (4):297-305.
M. Van Dijk (2000). The Influence of Publication of Financial Statements, Risk of Takeover and Financial Position of the Auditee on Public Auditors' Unethical Behaviour. Journal of Business Ethics 28 (4):297 - 305.
Ned Dobos, Christian Barry & Thomas Winfried Menko Pogge (eds.) (2011). Global Financial Crisis: The Ethical Issues. Palgrave Macmillan.
Yves Fassin & Derrick Gosselin (2011). The Collapse of a European Bank in the Financial Crisis: An Analysis From Stakeholder and Ethical Perspectives. [REVIEW] Journal of Business Ethics 102 (2):169-191.
Christian Barry & Matthew Peterson (2010). Dealing Fairly with the Costs to the Poor of the Global Financial Crisis. In Iain MacNeil & Justin O'Brien (eds.), The Future of Financial Regulation. Hart
Liliana Rojas-Suarez, Financial Regulations in Developing Countries: Can They Effectively Limit the Impact of Capital Account Volatility?
Bertrand Venard & Mohamed Hanafi (2008). Organizational Isomorphism and Corruption in Financial Institutions: Empirical Research in Emerging Countries. [REVIEW] Journal of Business Ethics 81 (2):481 - 498.
Michael E. Gorman (2005). Heuristics, Moral Imagination, and the Future of Technology. Behavioral and Brain Sciences 28 (4):551-551.
Added to index2011-03-15
Total downloads28 ( #134,409 of 1,790,294 )
Recent downloads (6 months)3 ( #267,458 of 1,790,294 )
How can I increase my downloads?