Markets carry explicit traces of the specific pricing models they use

Evidence

Two words at the top of each screen revealed how Autoquote updated prices: “Cox-Ross.” The Cox-Ross-Rubinstein model discussed in appendix E was used to generate prices. Human beings remained in ultimate command: by pressing on the section of the screens marked “lean,” traders could manually override model values, and, furthermore, the ebb and flow of orders in actively traded option classes did move prices. Nevertheless, such human interaction was now merely one aspect of a larger technosystem. — Donald MacKenzie, An Engine, Not a Camera, 899

Categorization

• XREF: Direct visual evidence for the performativity thesis: the model’s name literally appears on trading screens, a concrete instantiation of the book’s core argument. — connects to: Credit-risk regulation imports market-finance models developed for traded securities. — Ève Chiapello, Financialisation of Valuation, 60; A pricing model runs inside the exchange’s automated trading machinery. — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 135; Option pricing converged on economic models through traders copying other users. — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 183 (+4 more)