Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Enacting Market Crisis: The Social Construction of a Speculative Bubble

Mitchel Y. Abolafia and Martin Kilduff
Administrative Science Quarterly
Vol. 33, No. 2 (Jun., 1988), pp. 177-193
DOI: 10.2307/2393054
Stable URL: http://www.jstor.org/stable/2393054
Page Count: 17
  • Read Online (Free)
  • Download ($40.00)
  • Subscribe ($19.50)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Enacting Market Crisis: The Social Construction of a Speculative Bubble
Preview not available

Abstract

This study shows how the emotional phases that accompany market crisis can be related to an underlying cycle of actions, attributions, and regulatory reactions among participants in the market environment. The action-attribution-regulation process is here called "enactment," in order to focus on how market participants create the environment that then impinges on their activity. We illustrate this process with a case study of the 1980 crisis in the silver futures market, when prices soared from 10 per ounce to 50 per ounce and fell back to 10 per ounce in seven months. The traditional mania/distress/panic model of speculative bubbles is reframed as a cycle of organizing, focusing on the strategic actions of buyers, sellers, bankers, and government agencies. The paper shows how the crisis, enacted by market participants who created speculative opportunities, was resolved through the cooperation of powerful organizations that sought to protect the solvency of insiders and the integrity of the market. This view of market process suggests a cycle of action and institutional constraint that shapes the structure of market environments.

Page Thumbnails

  • Thumbnail: Page 
177
    177
  • Thumbnail: Page 
178
    178
  • Thumbnail: Page 
179
    179
  • Thumbnail: Page 
180
    180
  • Thumbnail: Page 
181
    181
  • Thumbnail: Page 
182
    182
  • Thumbnail: Page 
183
    183
  • Thumbnail: Page 
184
    184
  • Thumbnail: Page 
185
    185
  • Thumbnail: Page 
186
    186
  • Thumbnail: Page 
187
    187
  • Thumbnail: Page 
188
    188
  • Thumbnail: Page 
189
    189
  • Thumbnail: Page 
190
    190
  • Thumbnail: Page 
191
    191
  • Thumbnail: Page 
192
    192
  • Thumbnail: Page 
193
    193