Traders adopted the model for cognitive simplicity, not academic authority.

Evidence

However, while there were a number of participants with links to academia, Chicago floor traders in general were and are not in awe of professors. From their viewpoint, however, the model had the advantage of “cognitive” simplicity. The mathematics of the solutions to the Black-Scholes equation might be off-putting (especially when one had to consider dividend-bearing stocks and American puts), but the model could be talked about and thought about relatively straightforwardly. — Donald MacKenzie, An Engine, Not a Camera, 725

Categorization

• XREF: Connects to the performativity thesis’s claim that models must be materially and cognitively usable, not merely theoretically sound.