The purpose of this paper is to discuss the role of financial practice in the development of mathematics as applied in human judgement. The basis of the paper is in historical research from the 1990s that argues that the monetisation of western commerce, which abstracted value into quantified price, was synthesised with scholastic analysis resulting in a “mathematical mechanistic world picture” that led to the widespread use of mathematics in science from the seventeenth century. An aspect of this process was (...) the quantification of chance that led to the development of mathematical probability, the branch of mathematics most relevant to judgement and the focus of this paper. Ideas from this historical research are related to the fundamental theorem of asset pricing, the foundational theory of contemporary financial mathematics. The paper observes that vestiges of medieval scholastic attitudes to financial ethics can be discerned in the FTAP, offering a novel interpretation of the mathematical theorem. The paper then considers the Dutch book argument, the most popular justification for subjective probability. The paper’s main contribution is in describing the significance of financial practice in validating the DBA and the paper explains how the FTAP addresses some criticisms of how the DBA represents beliefs. The conclusions emphasise the distinction between pure and practical reasoning and that this should be mirrored in a distinction between the mathematics of physica and practica. This point is important as mathematics is becoming more widespread in modelling, and directing, social systems. (shrink)

Prosocial crowdfunding was originally conceived as a financial mechanism to assist vulnerable unbanked populations, typically excluded from formal financial markets. It subsequently grew into a billion-dollar scheme in the multi-billion-dollar crowdfunding industry. However, recent evidence claims prosocial crowdfunding may be shifting away from its goal to support the poor and underserved. Drawing on a composite social responsibility and framing theory framework, we examine the role that vulnerability plays in successfully raising funds in a prosocial crowdfunding context. We conduct multilevel logistic (...) regressions on a sample of microloans allocated to 105,727 ventures in 64 countries. Our results indicate that applying for funds through a field partner which caters to vulnerable populations may in fact have a negative effect on the entrepreneur’s request to be fully funded. Notwithstanding, framing the entrepreneur as being female or rural as key characteristics of individual vulnerability increases the project’s likelihood to be fully funded. This conflict offers noteworthy theoretical and practical implications for ethics in prosocial crowdfunding, an understudied field of research. (shrink)

Crowdfunding is regarded a financing mechanism that could improve the funding opportunities of businesses with a pro-social orientation. Indeed, it is assumed that on digital platforms, citizens are inclined to provide more support to projects with a social benefit than to those without such an orientation, with significant ethical implications for the common good. Yet, extant empirical evidence regarding such a claim is still inconclusive. To advance this discussion, the present paper analyzes the conditions that influence crowd support for projects (...) displaying a pro-social orientation on a reward-based crowdfunding platform. To build our hypotheses, we adopt the lens of framing theory, and we relate it to the digital context. Beginning from the premise that, on crowdfunding platforms, information about projects has a hierarchical structure, we argue that a project’s success crucially depends on how much its proponent emphasizes the pro-social cues within this structure. Moreover, we propose that because pro-social cues demarcate a project over others, the effectiveness of pro-social framing is enhanced when the number of projects on the platform, i.e., its crowdedness, increases. Logit estimates on 8631 Kickstarter projects indicate that pro-social framing is positively associated with success as we expected, yet only when it is moderately emphasized. Further, we find that crowdedness on the platform positively moderates the effect of pro-social orientation on success. (shrink)