An Equation and its Worlds

  title={An Equation and its Worlds},
  author={Donald MacKenzie},
  journal={Social Studies of Science},
  pages={831 - 868}
  • D. MacKenzie
  • Published 1 December 2003
  • Economics
  • Social Studies of Science
This paper describes and analyses the history of the fundamental equation of modern financial economics: the Black-Scholes (or Black-Scholes-Merton) option pricing equation. In that history, several themes of potentially general importance are revealed. First, the key mathematical work was not rule-following but bricolage, creative tinkering. Second, it was, however, bricolage guided by the goal of finding a solution to the problem of option pricing analogous to existing exemplary solutions… 

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