Theoretical models as creative resources in financial markets

Ekaterina Svetlova

pp. 121-135

in: Stephan A. Jansen, Eckhard Schröter, Nico Stehr (eds), Rationalität der Kreativität?, Wiesbaden, Verlag für Sozialwissenschaften, 2009

Abstract

Does it make sense to talk about creativity in financial markets? At first glance, the title of the article might appear paradoxical. Financial markets are considered to be a place where rationality governs. Economic agents behave rationally as they maximize their utility; they choose the action that helps them most to pursue defined goals. Financial market participants are just such rational agents; they follow strict rules, and their behavior is unambiguously determined and thus calculable and predictable. What is the reason then to talk about creativity in this supposedly most rational field of economic life?