Metaphors, Models & Theories
November 22, 2010
Theories deal with the world on its own terms, absolutely. Models are metaphors, relative descriptions of the object of their attention that compare it to something similar already better understood via theories. Models are reductions in dimensionality that always simplify and sweep dirt under the rug. Theories tell you what something is. Models tell you merely what something is partially like.
Number of Pages in PDF File: 14
Keywords: financial models, theories, valuation, pricing
JEL Classification: G00, G12, G13working papers series
Date posted: November 22, 2010 ; Last revised: December 6, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo5 in 0.500 seconds