Finance theory met smooth reception in academia but hostility from market practitioners.

Evidence

The quantitative, analytical skills that financial economists taught their students were certainly likely to be of practical benefit in their future employment. However, the relatively smooth institutionalization of finance theory within academia contrasts with an often quite different reaction to it outside universities. As financial-market practitioners gradually became aware of the views and the techniques that the theorists were developing, their response was frequently one of hostility, on occasion extreme hostility. — Donald MacKenzie, An Engine, Not a Camera, 333

Categorization

• XREF: Sets up the performativity contest between theorists and practitioners — the academic-validity vs. practical-workability tension running through the whole book. — connects to: Practitioners resisted finance theory partly because they felt academically ridiculed — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 355; Academic finance theorists used models for insight, not profit-seeking. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1110; Efficient-market theory undercut the professional credibility it seemingly supported. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 350 (+1 more)

Broader Connections

• Practitioners resisted finance theory partly because they felt academically ridiculed #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 355
• Empirical trading experience can block acceptance of a theory’s core assumptions. #expands (0.82) — Donald MacKenzie, An Engine, Not a Camera, 1106
• Academic finance theorists used models for insight, not profit-seeking. #expands (0.80) — Donald MacKenzie, An Engine, Not a Camera, 1110
• Efficient-market theory undercut the professional credibility it seemingly supported. #corroborates (0.80) — Donald MacKenzie, An Engine, Not a Camera, 350