Abstract
The recent debate concerning the 'sociology of arbitrage' has firmly established arbitrage as a category of theoretical significance in the social studies of finance. In this article, I seek to complicate this debate by drawing attention to a particular kind of ambiguity inherent in the category of arbitrage, as it is put to use in financial markets. I present certain Japanese arbitrageurs' reflections on the difference between arbitrage and speculation and examine the interplay of belief and doubt underlying arbitrage operations. I argue that the resulting ambivalence towards the category of arbitrage is a marker of arbitrageurs' particular epistemological stance, identity and ethical commitment. Finally, I consider the implications of arbitrage's ambiguity for the dominant trope of speculation in the critical study of financial markets more broadly.
Original language | English (US) |
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Pages (from-to) | 396-415 |
Number of pages | 20 |
Journal | Economy and Society |
Volume | 36 |
Issue number | 3 |
DOIs | |
State | Published - Aug 2007 |
Keywords
- Ambiguity
- Arbitrage
- Faith
- Financial markets
- Japan
- Speculation
ASJC Scopus subject areas
- History
- Economics and Econometrics
- General Social Sciences