La notion de risque en économie

Pradier, Pierre-Charles

doi:10.3917/dec.pradi.2006.01

Cited by 23 publications

(8 citation statements)

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“…1, p. 40. 29 Pradier (2006) shows how the notion of "risk" in economic theory is unstable and 30 multifarious. The notion of "risk-free" is yet one more variation of this ambiguous concept.…”

Section: The Statementioning

confidence: 99%

Political Imaginaries of the Weighted Average Cost of Capital: A Conceptual Analysis

Ortiz¹

2022

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This article analyzes the formulation of the “weighted average cost of capital” in the manuals of two of the most influential associations of financial analysts. It focuses on the use of the formula as the discount rate to determine the “fundamental value” of listed companies using the “discounted cash flows” method, a cornerstone of the definition of “shareholder value” used in the finance industry worldwide. It shows that the choice of variables and their mathematical relations in the formula mobilize multiple, partly independent and contradictory epistemologies and ontologies. This multiplicity is assembled along political imaginaries concerning the relation between particular notions of the maximizing investor, the efficient markets and the sovereign state. The figure of the investor is considered the only legitimate agent to claim the “free” cash flows of the company, the efficient markets are considered the source of truthful representation of value, and the state is supposed to guarantee both the fair play between investors and a minimum revenue for money owners, to be extracted from the rest of society through the tax system. The formula thus legitimizes and renders self-evident power relations that sustain the global inequalities produced by the finance industry.

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Section: The Statementioning

confidence: 99%

Political Imaginaries of the Weighted Average Cost of Capital: A Conceptual Analysis

Ortiz¹

2022

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“…The purpose of the expected utility model is to search for the maximum value [14]. The decision-maker's behaviors are evaluated by his/her utility expectancy (and not his mathematical esteem) [24] Consider a lottery, that is, a probability distribution p i on a set of consequences x i of a die for example from a finite number of consequences x i ∈ R, knowing that die probabilities are known in advance. Suppose there are X i consequences and whose values are represented by…”

Section: Modeling Risk Aversion In Utility Theorymentioning

confidence: 99%

Modeling of Risk Aversion Linked to Renewable Energy Policy and Decision-Maker Behavior

Ewanga¹

2022

Preprint

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This paper presents the behavior of decision makers, the possible choices and the strategies 1 resulting from the uncertainties related to the integration of renewable energies. Its uncertainties 2 are the risks associated with the volatility of renewable sources, the dynamics of energy production 3 as well as the planning and operation of the electricity grid. The goal is to model the risk-averse 4 decision-maker’s behavior and the choice of integrating renewable energies into the electrical system. 5 Following a bibliographic approach, we expose a methodology to model the decision-maker’s 6 behavior(risk aversion and predilection for risk) to risk taking. The risk-averse decision maker may 7 adopt nonlinear utility functions. Risk aversion is a behavior that reflects the desire to avoid risk 8 decisions and thus reduces the risk of adverse consequences. A decision support tool is provided to 9 the decision-maker to choose a best-fit strategy based on his preferences. The rational and risk-averse 10 decision-maker would seek to maximize a concave utility function instead of seeking to minimize its 11 cost. Taste or aversion to risk can be modeled by a thematic function of utility.

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“…The development of a risk-based AML/CTF approach within the banks was facilitated by the negotiations of the Basel II agreements, which entrusted bankers with the responsibility to evaluate by themselves the risks they face (Gallati, 2003; Pradier, 2006). The approach was also promoted by the Financial Action Task Force (FATF), 3 which has called on financial actors to adopt ‘a risk management process for dealing with money laundering and terrorism financing.…”

Section: Is There a Prince In The Tower? The Aml/ctf Drive Between State Sovereignty And Governmentalitymentioning

confidence: 99%

Reluctant partners?

2011

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The implementation of the ongoing anti-money laundering/counter-terrorism financing (AML/CTF) drive within the private sector reflects a tension between the logic of state sovereignty and that of neoliberal governmentality. In this article, we show that the main concrete output of two decades of global policy in this area is found in the routinization of professional interactions between banks and law enforcement agencies. Banks recruit former law enforcement officials and attempt to establish informal ties with the police or intelligence bodies. They are also actively involved in intelligence-led policing missions and have become embedded in interdependent relationships with law enforcement agencies. Drawing on data from 75 interviews conducted with AML/CTF professionals within France, the article shows how new everyday professional routines in the banking sector reflect governmentality in the making.

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La notion de risque en économie

Cited by 23 publications

References 0 publications

Political Imaginaries of the Weighted Average Cost of Capital: A Conceptual Analysis

Political Imaginaries of the Weighted Average Cost of Capital: A Conceptual Analysis

Modeling of Risk Aversion Linked to Renewable Energy Policy and Decision-Maker Behavior

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