Financial Markets are Markets in Stories: Some Possible Advantages of Using Interviews to Supplement Existing Economic Data Sources

Posted: 21 Nov 2012  

David Tuckett

University College London (UCL)

Date Written: November 21, 2012

Abstract

Fifty-two research interviews were conducted with money managers controlling over $500 billion. This paper presents detailed material from one interview to argue interviews usefully describe their shared reality and provide information about the conditions of action facing financial decision-makers with implications for aggregate behavior. Their shared reality was dominated by 'radical' uncertainty and information ambiguity which severely limited the scope for 'fully rational' decision-making. How they managed to commit to decisions was by creating narratives. The study suggests it may be useful to reconsider prejudices against the usefulness of talking to individual economic agents about what they actually do.

Keywords: financial markets, interviews, economic methodology, narrative, uncertainty

JEL Classification: B4, G1

Suggested Citation

Tuckett, David, Financial Markets are Markets in Stories: Some Possible Advantages of Using Interviews to Supplement Existing Economic Data Sources (November 21, 2012). Journal of Economic Dynamics and Control, Vol. 36, No. 8, 2012. Available at SSRN: https://ssrn.com/abstract=2178892

David Tuckett (Contact Author)

University College London (UCL) ( email )

Gower Street
London, WC1E 7HU
United Kingdom

HOME PAGE: http://www.ucl.ac.uk/psychoanalysis/unit-staff/david.htm

Paper statistics

Abstract Views
182