Bounded Rationalities, Routine, and Practical as well as Theoretical Blindness: On the Discrepancy Between Markets and Corporations
The more globalization goes on, the more the level of uncertainty, understood as Frank Knight did it (1921), increases. In other words, the probability of emergence of radical events, which are not predictable, seems to increase on a dramatic way. The general reaction of people – and utmost important, of markets – confronting this increase is to aiming at controlling the future. Far from being helpful, this contradiction deepens the possibility of crises rather than dampening it. Making clear the above tension facilitates to take some distance from daily short-term profit and security-oriented operations. The most significant added value of this study is to help stepping back from short-term objectives and to favor long-term, sustainable and secured profit making.
BIBARD, L. (2017). Bounded Rationalities, Routine, and Practical as well as Theoretical Blindness: On the Discrepancy Between Markets and Corporations. Dans: Extreme Events in Finance: Handbook of Extreme Value Theory and Its Applications. 1st ed. Wiley, pp. 571-581.