Academic findings directly spawned commercial investment products

Evidence

Dimensional’s first product was “designed literally on Banz’s paper,” Sinquefield said in an interview “It was the fifth quintile he talked about.” In 1982, Dimensional launched what was almost an index fund covering the smallest 20 percent of the stocks traded on the New York Stock Exchange. … Sinquefield rejected Banz’s proposed “arbitrage,” which involved holding small stocks and taking short positions on large stocks, because of its high volatility. … “Frankly, that’s all that could have been sold to the pension community anyway.” — Donald MacKenzie, An Engine, Not a Camera, 438

Categorization

• XREF: This is the core performativity thesis in action: an academic model (Banz’s small-firm effect) becoming an investment product that changes markets. Connects directly to the book’s central argument. — connects to: Unpublished academic research directly founded an investment firm’s strategy — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 437; Economists drove and profited from the commercialization of universities — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 587; Corporate and defense funding followed academic personality-prediction research. — Shoshana Zuboff, The Age of Surveillance Capitalism, 857 (+4 more)

Broader Connections

• Academic theory directly motivated the creation of the organized options exchange #corroborates (0.90) — Donald MacKenzie, An Engine, Not a Camera, 651
• Corporate and defense funding followed academic personality-prediction research. #exemplifies (0.85) — Shoshana Zuboff, The Age of Surveillance Capitalism, 857
• Experimental findings in economics circulate and reinforce the facts of the field #expands (0.75) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1980
• Patenting financial algorithms made finance seem scientifically grounded #expands (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 957
• Economists drove and profited from the commercialization of universities #expands (0.72) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 587