This working paper, titled "Economics Language and Assumptions: How Theories Can Become Self-Fulfilling," explores how economic theories can influence and shape social reality through institutional designs, management practices, social norms, and language. The authors argue that theories can become self-fulfilling because they not only predict behavior but also create conditions that make their predictions come true. They illustrate this concept using economic theories, particularly the idea of self-interest, and how it has influenced management practices and organizational behavior. The paper discusses three mechanisms through which theories can become self-fulfilling: institutional design, social norms, and language. It also examines the role of culture and accountability in the diffusion and impact of economic assumptions and language. The authors provide examples, such as the Chicago Board Options Exchange and operant conditioning, to demonstrate how economic theories can create conditions that validate their predictions. They conclude by suggesting that understanding the self-fulfilling nature of economic theories is crucial for comprehending how management practices develop and persist.This working paper, titled "Economics Language and Assumptions: How Theories Can Become Self-Fulfilling," explores how economic theories can influence and shape social reality through institutional designs, management practices, social norms, and language. The authors argue that theories can become self-fulfilling because they not only predict behavior but also create conditions that make their predictions come true. They illustrate this concept using economic theories, particularly the idea of self-interest, and how it has influenced management practices and organizational behavior. The paper discusses three mechanisms through which theories can become self-fulfilling: institutional design, social norms, and language. It also examines the role of culture and accountability in the diffusion and impact of economic assumptions and language. The authors provide examples, such as the Chicago Board Options Exchange and operant conditioning, to demonstrate how economic theories can create conditions that validate their predictions. They conclude by suggesting that understanding the self-fulfilling nature of economic theories is crucial for comprehending how management practices develop and persist.