Against all odds: the ‘loyalty’ of small investors
Veröffentlichungsdatum
2011-01-01
Autoren
Zusammenfassung
The share of small investors leaving the financial market in autumn 2008 was no greater than in previous, smaller crises. Why is there no mass exodus at such junctures? Why do most small investors practice ‘loyalty’ instead of ‘exit’ (Hirschman)? Even more importantly, why do they enter the financial market at all since its ‘hypercomplexity’ exposes them to an experience of confusion and helplessness? Behavioural economics provides some partial answers, but they remain too abstract and ahistorical and give a very reductionist picture of decision-making. In reaction to this incomplete understanding of the ‘loyalty’ puzzle, I will present two important explanatory factors from sociological reasoning: collectively shared stories as reducers of ‘hypercomplexity’ in which small investors’ decision-making is embedded, and the rebuilding of the welfare state, which forces more and more people to become small investors and stay in the market despite serious losses.
Schlagwörter
capitalism
;
economic man
;
financial crisis
;
financial market
;
investment banking
Verlag
Oxford University Press (OUP)
Institution
Fachbereich
Dokumenttyp
Artikel/Aufsatz
Zeitschrift/Sammelwerk
Band
9
Heft
1
Startseite
107
Endseite
135
Zweitveröffentlichung
Ja
Dokumentversion
Postprint
Sprache
Englisch
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Name
Against all odds - the loyalty of small investors.pdf
Size
725.97 KB
Format
Adobe PDF
Checksum
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