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Models as Speech Acts: The Telling Case of Financial Models

Author

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  • Nicolas Brisset

    (Université Côte d'Azur, France
    GREDEG CNRS)

Abstract

This paper intends to bring Austinian themes into methodological discussion about models. Using Austinian vocabulary, I argue that models perform actions in and outside of the academic field. This multiplicity of fields induces a variety of felicity conditions and types of performed actions. If for example, an inference from a model is judged according to some epistemological criteria in the scientific field, the representation of the world which the model carries, will not be judged by the same criteria outside the scientific field. A model can be considered as a standard in a strict scientific framework, while not being used as part of public policies, or vice versa. However, we focus on the dynamics between different fields.

Suggested Citation

  • Nicolas Brisset, 2017. "Models as Speech Acts: The Telling Case of Financial Models," GREDEG Working Papers 2017-25, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2017-25
    as

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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-25.pdf
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    References listed on IDEAS

    as
    1. Michael C. Jensen, 1968. "The Performance Of Mutual Funds In The Period 1945–1964," Journal of Finance, American Finance Association, vol. 23(2), pages 389-416, May.
    2. Nicolas Brisset, 2016. "On Performativity: Option Theory and the Resistance of Financial Phenomena," GREDEG Working Papers 2016-31, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    3. repec:hal:wpaper:hal-01222932 is not listed on IDEAS
    4. Nicolas Brisset, 2016. "Economics is not always performative: some limits for performativity," Journal of Economic Methodology, Taylor & Francis Journals, vol. 23(2), pages 160-184, June.
    5. Robert C. Merton, 2005. "Theory of rational option pricing," World Scientific Book Chapters,in: Theory Of Valuation, chapter 8, pages 229-288 World Scientific Publishing Co. Pte. Ltd..
    6. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," Review of Economic Studies, Oxford University Press, vol. 25(2), pages 65-86.
    7. Fabian Muniesa, 2014. "The Provoked Economy," Post-Print halshs-01113022, HAL.
    8. Julian Reiss, 2012. "The explanation paradox," Journal of Economic Methodology, Taylor & Francis Journals, vol. 19(1), pages 43-62, March.
    9. Lester G. Telser, 1955. "Safety First and Hedging," Review of Economic Studies, Oxford University Press, vol. 23(1), pages 1-16.
    10. Nicolas Brisset, 2015. "La construction de la finance contemporaine," Post-Print hal-01222932, HAL.
    11. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    12. Julian Reiss, 2013. "The explanation paradox redux," Journal of Economic Methodology, Taylor & Francis Journals, vol. 20(3), pages 280-292, September.
    13. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    14. Eugene F. Fama, 1965. "Portfolio Analysis in a Stable Paretian Market," Management Science, INFORMS, vol. 11(3), pages 404-419, January.
    15. Paul A. Samuelson, 1973. "Proof That Properly Discounted Present Values of Assets Vibrate Randomly," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 369-374, Autumn.
    16. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
    17. Holbrook Working, 1956. "New Ideas and Methods for Price Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(5), pages 1427-1436.
    18. repec:cup:jhisec:v:39:y:2017:i:04:p:549-569_00 is not listed on IDEAS
    19. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    20. Nicolas Brisset, 2016. "Economics Is not Always Performative: Some Limits for Performativity," Post-Print halshs-01319693, HAL.
    21. Nicolas Brisset, 2017. "On Performativity: Option Theory And The Resistance Of Financial Phenomena," Post-Print halshs-01646210, HAL.
    22. Harry V. Roberts, 1959. "Stock‐Market “Patterns” And Financial Analysis: Methodological Suggestions," Journal of Finance, American Finance Association, vol. 14(1), pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Thomas Delcey, 2018. "Efficient Market Hypothesis, Eugene Fama and Paul Samuelson: A reevaluation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01618347, HAL.

    More about this item

    Keywords

    Economic models; financial models; pragmatics of economic modeling; speech act; performativity;

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics

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