A context for financial mathematics: ethics in the face of uncertainty

Timothy Johnson

A context for financial mathematics: ethics in the face of uncertainty

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Abstract

This paper identifies the mathematical Fundamental Theorem of Asset Pricing with the ethical statement that equality is a sufficient and necessary criterion for justice. The consequence of this identification is that it highlights the importance of ethics and social cohesion when society faces uncertainty, rather than scarcity, and it challenges the assumption that economic decisions should be based exclusively on utility maximisation.

Original language	English
Journal	Review of Social Economy
Publication status	Unpublished - 2012

Keywords

Arbitrage, asset pricing, probability, ethics, ultimatum game

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This output contributes to the following UN Sustainable Development Goals (SDGs)

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abstract = "This paper identifies the mathematical Fundamental Theorem of Asset Pricing with the ethical statement that equality is a sufficient and necessary criterion for justice. The consequence of this identification is that it highlights the importance of ethics and social cohesion when society faces uncertainty, rather than scarcity, and it challenges the assumption that economic decisions should be based exclusively on utility maximisation. ",

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SN - 0034-6764

JO - Review of Social Economy

JF - Review of Social Economy

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A context for financial mathematics: ethics in the face of uncertainty

Abstract

Keywords

UN SDGs

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