Show Less
You do not have access to this content

Financial Models and Society

Villains or Scapegoats?

Ekaterina Svetlova

This innovative book employs the social studies of finance approach which aims to enhance the dialogue between finance and sociology by addressing the blind spots of economic and financial theories. In so doing, it challenges the accusations made towards financial models in the aftermath of the last economic crisis and argues that they cannot be condemned indiscriminately. Their influence on markets and society is not straightforward, but determined by the many ways in which models are created and then used. Ekaterina Svetlova analyses the various patterns of the application of models in asset management, risk management and financial engineering to demonstrate that their power is far more fragile than widespread criticism would indicate.
Show Summary Details
You do not have access to this content

Chapter 5: Models in “decision-selling”

Villains or Scapegoats?

Ekaterina Svetlova

Extract

In Chapter 5, I analyse model use for decision-selling, exploring how models are utilized to justify decisions and convince others to invest. Here, I demonstrate that financial models are applied not only to make decisions but also to communicate, provide legitimacy for decisions, perform impression management, reach a consensus and so on. These secondary functions can overlay the primary goals of model use (that is, calculation) and render models less important for immediate decision-making.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.