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Can financial economics learn from Dancing with the Stars?

Thu, 19 Jun 2014 10:05:28 GMT

Carola Binder (@cconces) brought my attention to a paper by Paul Rubin that was his presidential address to the Southern Economic Association.  What caught my attention was the paper is concerned with fear of markets (he coins the term 'emporiophobia' - fear of merchants or markets) that Prof Rubin associates with the emphasis economics places on competition rather than cooperation.  These themes resonate with me, since I believe that central to the Fundamental Theorem of Asset Pricing, the key theory of Financial Mathematics, is the concept of reciprocity, and this reflects a profound relationship between mathematics, markets and ethics.  In particular, I hold a somewhat perverse view that it is not markets that degrade public morality, but society degrades commercial morality.  In my mind, Rubin's paper holds implicit support for my views. Rubin observes that economics adopts the competition metaphor from sport, citing Deirdre McCloskey who is important for me...

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