Can the Nobel Prize Committee recall its award? Hmmm... they may want to think about it.
Vikash Yadav Philadelphia, PA
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http://www.managersart.com/chap.1to10/chap1.htm
Robert Merton For his role in developing the means to determine option values, the celebrated Black-Scholes options pricing model, Harvard Business School's Robert Merton shared a Nobel prize in 1997 with Myron Scholes. (Fischer Black died in 1995, at age 57). Although his name does not adorn the model, Merton, now 55 and Harvard's John and Natty McArthur University Professor, was the First to recognise a practical structure for a theoretical solution.
"In a futuristic keynote speech last spring, Enron Corp. president and chief operating officer Jeff Skilling explicitly made the case that his and his managers' thinking across all facets of Enron's operations is built around the integration of modern financial technologies and physical technologies. This integration strategy, made possible by the financial innovation and vast reductions in transaction costs of the last decade, is already causing fundamental changes in the industrial organisation of the power and energy industries. Its application is likely to spread to other industries, with similar effects.
"Thus, learning how financial-asset concepts can be applied to production decisions as with real-options analysis, and understanding financial contracting so that integrative strategies can be executed effectively, may become essential managerial skills for competitive success."