Building a new market required mobilizing existing exchange members through moral suasion.

Evidence

“Respect” and “obligation,” in their turn, are resources for moral suasion. On the CBOE’s first morning, its failure seemed an alarming possibility. “There were two traders on the floor,” recalls Eisen. “Eddie [O’Connor] and I were running all over the floor making markets.” They returned to the floor of the CBT: “We went around and we convinced everybody to come in at least when grains got a little slow, around 11.15, 11.30 … and then they’d go back and trade the close in grains” (Eisen, in CBOE/OCC 1998b). — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 84

Categorization

• XREF: Connects to the performativity thesis: a market’s creation is social-organizational, not just theoretical. — connects to: Creating the CBOE required costly unpaid collective effort by exchange members — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 69; Moral suasion via respect and obligation recruided members to trade new derivatives products. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 687

Related

• New derivatives markets initially lacked liquidity and depended on founders’ moral suasion to survive (similarity 0.88)
• Creating the CBOE required costly unpaid collective effort by exchange members (similarity 0.86)
• Pure rational self-interest cannot explain founding a derivatives exchange (similarity 0.83)
• Moral suasion via respect and obligation recruided members to trade new derivatives products. (similarity 0.83)
• New financial markets require coercive persuasion of members to create initial liquidity (similarity 0.82)
• Rational-egoist theory cannot explain why anyone founded the CBOE (similarity 0.78)
• Launching a new market contract requires coercive mobilization of its own members. (similarity 0.78)

Broader Connections

• Moral suasion via respect and obligation recruided members to trade new derivatives products. #corroborates (0.95) — Donald MacKenzie, An Engine, Not a Camera, 687