Financial market agents driven by short-term gains hinder societal welfare.
The article discusses how people in financial markets make decisions based on uncertainty and try to predict others' actions to avoid losses or make profits. This can lead to a lack of collective perspective and coordination. The researchers argue that individual decisions do not always lead to social welfare due to a lack of tools, understanding of common reality, and agreement on collective action. Rules are seen as guidelines to help coordinate group efforts, rather than constraints.