Description
Traditional capital budgeting theory (as an extension of ®nancial economics) is characterized as Panglossian because
of its suggestion that rational market outcomes produce the best of all possible worlds. During the last two decades,
practice-oriented theorists have increasingly been moving from algorithmic capital budgeting techniques to a focus on
capital investment strategy. Also, during the last twelve years, economics researchers at the Santa Fe Institute (SFI)
have scrapped the dubious assumptions of neoclassical economics and have turned to complex adaptive systems theory
for a more realistic portrayal of the economy.
doc_484978662.pdf
Traditional capital budgeting theory (as an extension of ®nancial economics) is characterized as Panglossian because
of its suggestion that rational market outcomes produce the best of all possible worlds. During the last two decades,
practice-oriented theorists have increasingly been moving from algorithmic capital budgeting techniques to a focus on
capital investment strategy. Also, during the last twelve years, economics researchers at the Santa Fe Institute (SFI)
have scrapped the dubious assumptions of neoclassical economics and have turned to complex adaptive systems theory
for a more realistic portrayal of the economy.
doc_484978662.pdf