Hinterleitner, Markus; Rosser, Christian (2015). Regulation and the Management of Expectations - Rating Agencies Revisited. European Policy Analysis, 1(2), pp. 71-89. Policy Studies Organization 10.18278/epa.1.2.4
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In the aftermath of the 2008 crisis, scholars have begun to revise their
conceptions of how market participants interact. While the traditional
“rationalist optic” posits market participants who are able to process decisionrelevant
information and thereby transform uncertainty into quantifiable risks,
the increasingly popular “sociological optic” stresses the role of uncertainty
in expectation formation and social conventions for creating confidence in
markets. Applications of the sociological optic to concrete regulatory problems
are still limited. By subjecting both optics to the same regulatory problem—the
role of credit rating agencies (CRAs) and their ratings in capital markets—this
paper provides insights into whether the sociological optic offers advice to tackle
concrete regulatory problems and discusses the potential of the sociological
optic in complementing the rationalist optic. The empirical application suggests
that the sociological optic is not only able to improve our understanding of the
role of CRAs and their ratings, but also to provide solutions complementary to
those posited by the rationalist optic.
Item Type: |
Journal Article (Original Article) |
|---|---|
Division/Institute: |
11 Centers of Competence > KPM Center for Public Management |
UniBE Contributor: |
Hinterleitner, Markus, Rosser, Christian |
Subjects: |
300 Social sciences, sociology & anthropology > 350 Public administration & military science 300 Social sciences, sociology & anthropology > 320 Political science |
ISSN: |
2380-6567 |
Publisher: |
Policy Studies Organization |
Language: |
English |
Submitter: |
Markus Hinterleitner |
Date Deposited: |
21 Oct 2015 15:07 |
Last Modified: |
05 Dec 2022 14:49 |
Publisher DOI: |
10.18278/epa.1.2.4 |
BORIS DOI: |
10.7892/boris.72200 |
URI: |
https://boris.unibe.ch/id/eprint/72200 |
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