Efficient-market theory undercut the professional credibility it seemingly supported.

Evidence

The existence of an increasingly authoritative theory of finance might be thought helpful in gaining professional status. The trouble, though, was that the theory suggested that much of the apparent expertise of members of the putative profession was either spurious (as in the case of chartists) or of little or no direct practical benefit (as in the case of most fundamentals analysts). — Donald MacKenzie, An Engine, Not a Camera, 350

Categorization

• XREF: Connects to the broader performativity thesis: a theory can be adopted in ways that undercut its own promoters’ professional claims. — connects to: Finance theory met smooth reception in academia but hostility from market practitioners. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 333; Practitioners experienced efficient-market theory as a professional identity threat — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 354; Technical ‘efficiency’ carries ordinary positive connotations that lend markets unwarranted legitimacy — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1133 (+3 more)

Broader Connections

• Practitioners experienced efficient-market theory as a professional identity threat #complicates (0.85) — Donald MacKenzie, An Engine, Not a Camera, 354
• Technical ‘efficiency’ carries ordinary positive connotations that lend markets unwarranted legitimacy #qualifies (0.75) — Donald MacKenzie, An Engine, Not a Camera, 1133
• Elite silence follows the ideal of value-free rational professionalism #expands (0.75) — Zygmunt Bauman, Modernity and the Holocaust, 356
• Practitioners knew market anomalies before academics documented them #complicates (0.70) — Donald MacKenzie, An Engine, Not a Camera, 425