Quantitative sophistication alone cannot replace local market knowledge and culture.

Evidence

As Salomon’s arbitrage activities began to expand overseas, Meriwether who, like the traders at Dimensional Fund Advisors, was a good practical economic sociologist realized that it would not be enough simply to send Americans, however sophisticated mathematically, into overseas markets. “Knowing the culture,” he says, “was more important than just quantitative knowledge.” — Donald MacKenzie, An Engine, Not a Camera, 974

Categorization

• XREF: Resonates with the performativity thesis: arbitrage success depends on understanding the social/institutional context that drives price discrepancies, not just math. — connects to: Mass-level genius cannot substitute for specific local knowledge — Robert A. Caro, The Power Broker: Robert Moses and the…, 2064
• QUESTION: How does ‘knowing the culture’ interact with models’ performativity — do models still shape markets even when local practice drives discrepancies?