Performativity can only be judged through historical study of markets

Evidence

We shall argue that to theorize how performativity articulates with these themes requires that conventional economic notions of the rational actor both be impoverished (in the sense of the acknowledgment of human cognitive limitations) and enriched. To study the articulation empirically demands, we claim, a historical understanding of markets. If the CBOE were examined at any one point in time, quite mistaken conclusions about performativity could be reached. — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 47

Categorization

• XREF: Methodological caution that a snapshot view of any market at one time would misread performativity. — connects to: Performativity has real limits; markets still need culture and trust — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 25; Performativity has limits that historical crises can break, producing theory-resistant market anomalies — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 188; Market pricing regimes shift with historical events, not gradual efficiency gains — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 151 (+1 more)

Related

• Performativity has real limits; markets still need culture and trust (similarity 0.85)
• Performativity claims must be distinguished from the market merely converging on a correct theory. (similarity 0.85)
• Studying performativity forces attention to the very market objects economics analyzes. (similarity 0.82)
• Markets can be performatively constructed by agents who are not atomistic homo economicus (similarity 0.81)
• Economic performativity rests on human cognitive limits and mutual susceptibility (similarity 0.80)
• Performativity has limits that historical crises can break, producing theory-resistant market anomalies (similarity 0.80)
• Economic action as distributed cognition is what makes embedded theory genuinely performative. (similarity 0.80)
• Markets act as cognitive prostheses enabling outcomes beyond individual rationality (similarity 0.79)
• Performativity and efficiency both potentially explain the formula’s growing accuracy. (similarity 0.79)
• Gradual market learning is the rival explanation to performativity (similarity 0.79)
• Sociological description of art markets becomes explanatory only through diachronic narrative. (similarity 0.79)
• Option pricing theory serves as the test case for performativity. (similarity 0.79)
• Economic theory succeeded in derivatives markets partly by making markets conform to it (similarity 0.79)
• Financial instruments shape markets rather than merely read them (similarity 0.78)
• Performativity shifts analysis from model accuracy to model use effects (similarity 0.78)

Broader Connections

• Performativity has limits that historical crises can break, producing theory-resistant market anomalies #qualifies (0.85) — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 188
• Sociological description of art markets becomes explanatory only through diachronic narrative. #expands (0.85) — Fredric Jameson, Postmodernism, or, The Cultural Logic…, 868
• Market pricing regimes shift with historical events, not gradual efficiency gains #corroborates (0.78) — Donald MacKenzie, An Engine, Not a Camera, 151