Donald McKenzie wrote An Engine, Not a Camera: How Financial Models Shape Markets.

· Bits and Bobs 11/10/25
  • Donald McKenzie wrote An Engine, Not a Camera: How Financial Models Shape Markets.
    • It makes the case that tools like the Black-Scholes model for options pricing don't just describe the market, they transform it.
    • It allows everyone in the market to use the same tool.
    • Once traders coordinate around the model, their collective behavior makes it "right" - not because it is objectively correct, but because using it transforms the market to match its predictions.