”[4] More bluntly, the law allows for some profits to be “sacrificed” for moral or legal reasons under broad standards of managerial discretion, such as the business judgment rule for corporations.[5] However, this legal reality has not stopped many professors in law and business schools from teaching economic models – often highly stylized in the language of financial mathematics – that take profit maximization as a foundational assumption.[6] Too often, this… [read post]