Constructing a Market, Performing Theory: The Historical Sociology of a Financial Derivatives Exchange1

@article{MacKenzie2003ConstructingAM,
  title={Constructing a Market, Performing Theory: The Historical Sociology of a Financial Derivatives Exchange1},
  author={Donald MacKenzie and Yuval Millo},
  journal={American Journal of Sociology},
  year={2003},
  volume={109},
  pages={107 - 145}
}
This analysis of the history of the Chicago Board Options Exchange explores the performativity of economics, a theme in economic sociology recently developed by Callon. Economics was crucial to the creation of financial derivatives exchanges: it helped remedy the drastic loss of legitimacy suffered by derivatives in the first half of the 20th century. Option pricing theory—a “crown jewel” of neoclassical economics—succeeded empirically not because it discovered preexisting price patterns but… Expand
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