One question of fundamental significance is the relationship between openness, anonymity and the degree to which people are willing to take risks.
Given that it involves the psychology of decision-making and potentially serious financial repercussions, this issue is an interesting one for behavioural economists. But might the same also be said about too much transparency? Psychology of decision-making Naturally, little or no transparency is a bad thing. Accordingly, the financial industry faces mounting pressure to submit to greater public scrutiny.
Many feel that a similar philosophy has too often been applied in the world of finance. Remember the Fawlty Towers episode in which a slice of veal that may or may not have been coated with rat poison is rescued from the kitchen floor and prepared for the plate of a visiting health inspector? “What the eye don’t see,” chirps Basil’s ever-insouciant cook, while casually dusting down the offending cutlet, “the chef gets away with.”
