Financial Market Ethics

• 成果类型: Article
• 署名作者: Easley, David; O'Hara, Maureen
• 署名单位: Cornell University; Cornell University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhac015
• 发表日期: 2023
• 页码: 534
• 关键词: systemic risk; social norms; EVOLUTION; RECIPROCITY; misconduct; contagion; networks; culture; MODEL

摘要

We develop a model of psychological-games-played-on-a-network to demonstrate a role for endogenously determined, rationally chosen ethics. Our analysis produces sharp results about contagion of nonethical or ethical behavior and the possible equilibrium configurations of each type of behavior. We find, and quantify, critical densities for clusters of each type of behavior that determine everything about contagion. We introduce society as a third player to investigate ethical failures as externalities. We use these results to show how regulations and network structure can affect whether clusters of ethical behavior can survive and how large they can be in a financial market setting.