I’ve decided to include a paper over 250 years old in the literature review of my MBA dissertation, Daniel Bernoulli’s “Specimen theoriae novae de mensura sortis (Exposition of a New Theory on the Measurement of Risk)”. It’s just possible this is the oldest paper ever cited in an MBA dissertation.
He’s actually of very high relevance to my dissertation subject – a behavioural finance guy centuries before the term was invented, telling us why perceived risk means individual investors rarely use marginal utility for decisionmaking. This has a huge effect today, when millions of emotion-driven traders determine stockmarket values on the basis of sentiment in the media. But my ulterior motive is that citing a mathematical paper written by a Dutch academic, in 1738, in Latin, must surely guarantee me a Distinction.