On the collective soul of booms and busts

Globalization led to an intricate set of interactive relationships between individuals, organizations and states. Unprecedented global interaction possibilities have made communication more complex than ever before in history as the whole has different properties than the sum of its increasingly diversified parts.  With growing globalization and quickening of transfer speed, Information may impose unknown systemic economic risks on a global scale.  Collective interaction effects lead to hard-to-foreseeable fallacy of composition downfalls.  Emergent risks imbued in interaction appear to be inherent of global economic systems. In the age of instant and constant information flow, an in-debt understanding of how information echoes in socio-economic correlates has gained unprecedented momentum.  In seeking to shed light on implicit system failures’ socio-economic consequences down the road and potentially-disastrous outcomes of cumulative actions triggering mass movements; the project will outline unexpected dangers and insufficiently-described shadows of the invisible hand of the world economy.  Overall, the project innovatively paints a novel picture of mass psychological underpinnings of business cycles based on information transfers and processing in order to recommend how certain communication strategies could counterweight and alleviate the building of unfavorable financial market mass movements.  Acknowledging that human beings are connected to and interact with each other in new networks allows studying the role of information in building socially-constructed economic correlates in order to explain how market outcomes are developed in the social compound and can be shaped by media strategies.  Addressing limitations of neoclassical assumptions of perfect information markets through the lens of ‘real competition’ (Shaikh, 2015), the project specifically unravels how contemporary media communication produces certain types of price expectations that form consumption patterns leading to economic fluctuations.  An introduction to the history of economic cycles will lead to the analysis of the role of information in the creating of economic booms and busts in the age of information globalization.  Applying emergent risk theory onto economic fluctuations will serve as innovative way to explain how and what information represented in the media creates economic ups and downs.  Empirically, linguistic analyses of newspaper articles about socio-political and economic facts are aimed at shedding light on how media representations and temporal foci echo in economic correlates and therefore shape market outcomes.  As business cycles are collective phenomena, group interactions’ potential contribution to create business cycles will innovatively be outlined and the role of information flows between and among groups in creating price expectations unraveled.  Business cycles will also be shown to obey some kind of natural complexity, as for being whimsically influenced by socio-historic and political trends.  Recommendations how to create more stable and sustainable economic systems by avoiding emergent risks and communicating market prospects cautiously will be aimed for.   

 

Work in progress running time 2017-2018

Contact: Julia M. Puaschunder

US:  T 001 212 229 5700 4905

M 001 7188778871

F 001 212 229 5724

EU:  M 0043-69917250979

Julia.Puaschunder@newschool.edu

Julia.Puaschunder@columbia.edu

Financial and in-kind support of the Association for the Eugene Lang Liberal Arts College of The New School, Fritz Thyssen Foundation,  Georgia State University, Huebner Foundation for Insurance Education, Janeway Center Fellowship, The New School for Social Research New York (Dean’s List, Fee Board Scholarship, President’s Scholarship), Prize Fellowship of the Inter-University Consortium of New York, University of Vienna, and Vernon Art and Science is gratefully acknowledged.

Output:

Publications:

Books:

Puaschunder, J.M. (forthcoming). Corporate Social Responsibility and Opportunities for Sustainable Financial Success. Hershey, Pennsylvania: IGI Publishing.

Chapters:

Puaschunder, J. M. (forthcoming). Nachhaltigkeit und Investment. In: Bamberg & Schmitt, Psychologie und Nachhaltigkeit: Konzeptionelle Grundlagen, Anwendungsbeispiele und Zukunftsperspektiven.

 

Articles:

Puaschunder, J. M. (under contract). Eyes wide shut: The role of Information for real competition. Information Technology Risk Management and Compliance in Modern Organizations, IGI Publishing.

Puaschunder, J. M. (under contract). Time≠Time≠Time. Handbook of Research on Industrial and Organizational Psychology in the Modern Marketplace.

Puaschunder, J. M. (2017). Nudgital: Critique of a behavioral political economy. Archives of Business Research.

Puaschunder, J. M. (2017). Ethical, environmental, social and governance-oriented investments. Archives of Business Research, 5, 8, 151-159.

Puaschunder, J. M. (2017). Krisenrobuste Alternativen. Global Investor, 3, 5, 69.

 

Conference presentations:

Puaschunder, J. M. (forthcoming). The nudging divide in the digital big data era. International Robotics & Automation Journal.

Puaschunder, J. M. (2017). Nudgitize me! A behavioral finance approach to minimize losses and maximize profits from heuristics and biases. Academy of Behavioral Finance & Economics, 2017 Annual Meeting, University of California Los Angeles, Los Angeles, California, USA, October 18-20, 2017.

Puaschunder, J. M. (2017). The Austrian Way: Sozialpartnerschaft as means to curb the falling rate of profit. 16th Finance, Risk and Accountability Perspectives Conference:  Sustainability and Risk: Environmental, Social and Governance Perspectives, University of Cambridge, Cambridge UK, Great Britain, September 26.

Puaschunder, J. M. (2017). On the collective soul of booms and busts. 21st Conference of the International Federation of Operational Research Societies: Operational Research and Analytics for a Better World, Quebec City, Quebec, Canada, July 17-21.

Puaschunder, J. M. (2017). Nudgital: Critique of Behavioral Political Economy. Behavioral Economics, The New School for Social Research, March 30.

 

Invited events:

Fifth Annual Conference on Sustainable Development: The World in 2050: Looking Ahead for Sustainable Development,’ Lerner Hall, Columbia University, New York, New York, September 18-19, 2017.

4th Annual Center for the Economic Analysis of Risk-Huebner Summer Risk Institute 2017,’ Georgia State University, July 25-26, 2017.

‘Disrupted: Speech and Democracy in the Digital Age,’ Italian Academy of Columbia University, Columbia University, New York, New York, USA, May 1, 2017.

Invited events Fictitious Capital: Is Finance Appropriating Our Future? French General Consulate New York, New York, USA, June 27, 2017.

Community Service:

Chair, Risk panel, 16th Finance, Risk and Accountability Perspectives Conference:  Sustainability and Risk: Environmental, Social and Governance Perspectives, University of Cambridge, Cambridge UK, Great Britain, September 26.