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Information and Knowledge Based Conceptual Study of 2008 Financial Crisis

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Transforming Digital Worlds (iConference 2018)

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 10766))

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Abstract

Although a proper and wide diffusion of information and knowledge is acknowledged by economic theory as a necessary condition for a perfect functioning of markets, there are some weaknesses of conceptualization of information and knowledge applied to economics. As a contribution to fill this gap, the purpose of this paper is to set up a conceptual analysis and discussion of 2008 Great Financial Crisis (GFC) in terms of information and knowledge. As theoretical basis for this discussion we have selected the Boisot’s framework of Information Space (I-Space) [1, 2] which we relate with the proposal of Van den Berg [3] about encapsulated knowledge. This enhances us to discuss two key elements concerning the 2008 GFC: securitization and qualifications of rating. Our analysis shows how the sociotechnical innovations concerning financial markets in the years previous to GFC, contributed to create or increased information and knowledge asymmetries. These asymmetries impacted the risk management by the stakeholders implied in financial markets and eroded the correct function of these markets until the 2008 collapse.

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Author information

Authors and Affiliations

  1. Computer Science, Multimedia and Telecommunication Studies, Universitat Oberta de Catalunya, Rambla de Poblenou 156, 08018, Barcelona, Catalonia, Spain

    Josep Cobarsí-Morales

  2. Economics and Business Management Studies, Universitat Oberta de Catalunya, Av. Tibidabo 39-43, 08035, Barcelona, Catalonia, Spain

    Agustí Canals

Authors
  1. Josep Cobarsí-Morales
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  2. Agustí Canals
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Correspondence to Josep Cobarsí-Morales .

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Editors and Affiliations

  1. Northumbria University, Newcastle upon Tyne, United Kingdom

    Gobinda Chowdhury

  2. Northumbria University, Newcastle upon Tyne, United Kingdom

    Julie McLeod

  3. University of Sheffield, Sheffield, United Kingdom

    Val Gillet

  4. University of Sheffield, Sheffield, United Kingdom

    Peter Willett

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Cobarsí-Morales, J., Canals, A. (2018). Information and Knowledge Based Conceptual Study of 2008 Financial Crisis. In: Chowdhury, G., McLeod, J., Gillet, V., Willett, P. (eds) Transforming Digital Worlds. iConference 2018. Lecture Notes in Computer Science(), vol 10766. Springer, Cham. https://doi.org/10.1007/978-3-319-78105-1_30

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  • DOI: https://doi.org/10.1007/978-3-319-78105-1_30

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-78104-4

  • Online ISBN: 978-3-319-78105-1

  • eBook Packages: Computer ScienceComputer Science (R0)

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