A Market for Weather Risk ? Conflicting Metrics, Attempts at Compromise and Limits to Commensuration
In this paper, we examine the process of risk commodification involved in the creation of a market for weather derivatives in Europe. We approach this issue through an in-depth qualitative study in which we focus on the commensuration process by which promoters try to draw weather risk into the financial world. By offering a concrete description of a derivatives market as a meeting place between different metrics, our results highlight the failure of a process of commensuration - a phenomenon rarely studied empirically in the literature - and its unexpected results. Compared to existing research, we use the theoretical framework provided by Boltanski and Thévenot (2006) to enrich the literature on commensuration specifically as regards the different forms of agreement to which commensuration attempts can lead. Our results highlight the crucial role of a common interest for commensuration to succeed, and the conditions necessary for this common interest to occur. We conclude that there are limits to the thesis of financial theory, according to which all kinds of risk can be transformed into financial risk, and exchanged on financial markets.
|Date of creation:||2011|
|Date of revision:|
|Publication status:||Published in Organization Studies, SAGE Publications, 2011, 32 (10), pp.1395-1419|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00637068|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
- Daniel Beunza & David Stark, 2004. "Tools of the trade: the socio-technology of arbitrage in a Wall Street trading room," Industrial and Corporate Change, Oxford University Press, vol. 13(2), pages 369-400, April.
- Emiliano Grossman & Fabian Muniesa & Emilio Luque, 2006.
"Economies through transparency,"
- Emiliano Grossman & Emilio Luque & Fabian Muniesa, 2006. "Economies through transparency," CSI Working Papers Series 003, Centre de Sociologie de l'Innovation (CSI), Mines ParisTech.
- Emiliano Grossman & Emilio Luque & Fabian Muniesa, 2008. "Economies through transparency," Post-Print halshs-00322141, HAL.
- repec:dau:papers:123456789/263 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00637068. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.