Saturday, August 08, 2009

Us vs. Them at Chicago Business School, circa 1960

I found this interesting bit of "sociology of the academic world" in Paul Krugman's review of The Myth of the Rational Market -- A History of Risk, Reward, and Delusion on Wall Street by Justin Fox:

One of the great things about Fox’s writing is that he brings to it a real understanding of the sociology of the academic world. Above all, he gets the way in which one’s career, reputation, even sense of self-worth can end up being defined by a particular intellectual approach, so that supporters of the approach start to resemble fervent political activists — or members of a cult. In the case of finance theory, it happened especially fast: by the early 1960s Miller began a class at the University of Chicago’s business school by drawing a line down the middle of the blackboard. On one side he wrote M&M, for “Modigliani-Miller” — that is, the new, mathematicized, CAPM approach to finance. On the other he wrote T — for “Them,” meaning the old, informal approach.


  1. gaddeswarup said...

    Off topic. Where is the search feature in this blog? Thanks.

  2. Anonymous said...


    There is a search option at the top left of the blog.

    P.S. You have a very nice blog

  3. Ajay said...
    This comment has been removed by the author.