Metaphors, Models & Theories
14 Pages Posted: 22 Nov 2010 Last revised: 6 Dec 2010
Date Written: 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.
Keywords: financial models, theories, valuation, pricing
JEL Classification: G00, G12, G13
Suggested Citation: Suggested Citation
Derman, Emanuel, Metaphors, Models & Theories (November 22, 2010). Available at SSRN: https://ssrn.com/abstract=1713405 or http://dx.doi.org/10.2139/ssrn.1713405
Do you have a job opening that you would like to promote on SSRN?
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.