The DOI matches its Crossref record; 4 of the 4 references it cites were found in a registry or an index.
The big, bad wolf and the rational market: portfolio insurance, the 1987 crash and the performativity of economics
Abstract
This article distinguishes two meanings of the performativity of economics, a thesis advanced by Michel Callon: ‘generic’ performativity, according to which markets and other economic relations are not to be taken as given, but as performed by economic practices; and ‘Austinian’ performativity, in which economics brings into being the relationships it describes. The two versions of performativity are explored by means of an examination of the history of portfolio insurance (a financial-market technique based on the economics of option pricing), of the 1987 stock market crash, and of subsequent efforts to diagnose the causes of the crash and to redesign the market to avoid future catastrophe. The article emphasizes the extent to which the financial markets of high modernity are designed entities, and argues that the question of their design is always a political question, even if it is seldom recognized as such.
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Citations
Cites
The pricing of options and corporate liabilities
Black, F., & Scholes, M. (1973) · Journal of Political Economy · doi:10.1086/260062 · Cited by 29,074
Austin, J. L. (1975) · doi:10.1093/acprof:oso/9780198245537.001.0001 · Cited by 21,496
Shleifer, A., & Vishny, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03807.x · Cited by 5,291
Technology, politics and the market: an interview with Michel Callon
Barry, A., & Slater, D. (2002) · Economy and Society · doi:10.1080/03085140220123171 · Cited by 156
Cited by
An Engine, Not a Camera: How Financial Models Shape Markets
MacKenzie, D. (2006) · doi:10.7551/mitpress/9780262134606.001.0001 · Cited by 1,766
Self-citationAn introduction to market devices
Muniesa, F., Millo, Y., & Callon, M. (2007) · The Sociological Review · doi:10.1111/j.1467-954x.2007.00727.x · Cited by 795
Butler, J. (2010) · Journal of Cultural Economy · doi:10.1080/17530350.2010.494117 · Cited by 700
Fligstein, N., & Dauter, L. (2007) · Annual Review of Sociology · doi:10.1146/annurev.soc.33.040406.131736 · Cited by 601
The Politics of Uncertainty: Challenges of Transformation
Scoones, I., & Stirling, A. (2020) · doi:10.4324/9781003023845 · Cited by 158
Metadata
- Authors
- MacKenzie, D.
- Venue
- Economy and Society
- Publisher
- Informa UK Limited
- Published
- 2004-08
- Volume
- 33
- Issue
- 3
- Pages
- 303-334
- ISSN
- 0308-5147 (ISSN-L)
- 1469-5766
- OpenAlex
- W2007623571
- Cited by
- 290
- References
- 4
- FWCI
- 33.98
- Type
- journal article
- Language
- en
- Open access
- closed
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- MacKenzie, D. (2004). The big, bad wolf and the rational market: portfolio insurance, the 1987 crash and the performativity of economics. Economy and Society. https://doi.org/10.1080/0308514042000225680
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
