This book is an important addition to the emerging body of new work on capital. Its primary contribution is in analysing capital investment choice as a process. The understanding of this process requires some modification and significant extension to the standard neo-classical economic tools.
Capital and Uncertainty is a non-mathematical text, modernizing and adding to the existing thought in this area, with insights from game theory, rational choice under uncertainty and new institutional economics. Dr Runge also draws upon 25 years of business experience in setting out a thorough and immensely practical exposition of the risk/return trade-off and how major capital investment decisions are made within firms.
Topics studied include:
• the nature of capital investment decisions
• entrepreneurship and the market order
• capital investment choice processes
• capital investment models
• capital decisions: choices between strategies
Economists, industrial organisation specialists, business academics and practitioners alike will all find this book of immense interest and use.