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The whole edifice of modern financial theory is, as described earlier, founded on a few simplifying assumptions. It presumes that homo economicus is … - Benoit Mandelbrot
" "The whole edifice of modern financial theory is, as described earlier, founded on a few simplifying assumptions. It presumes that homo economicus is rational and self-interested. Wrong, suggests the experience of the irrational, mob-psychology bubble and burst of the 1990's. A further assumption: that price variations follow the bell curve. Wrong, suggests the by-now widely accepted research of me and many others since the 1960's. And now the next assumption wobble: that price variations are what statisticians call i.i.d., independently and identically distributed-like the coin game with each toss unaffected by the last. Evidence for short-term dependence has already been mounting. And now comes the increasingly accepted but still confusing evidence of long-term dependence.
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About Benoit Mandelbrot
Benoît B. Mandelbrot (20 November 1924 – 14 October 2010) was a Poland-born French-American mathematician known as the "father of fractal geometry".
Biography information from Wikiquote
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Alternative Names:
Mandelbrot, B. B.
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Benoît Mandelbrot
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Benoit B. Mandelbrot
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Benoît B. Mandelbrot
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Additional quotes by Benoit Mandelbrot
This difficulty — am I a mathematician because my degree says so? Am I an engineer because I'm interested in things? Am I a social scientist because I don't think there's a difference between the turbulence in stock markets in terms of unpredictability? At IBM I wouldn't have to worry about that. The names of departments were totally strange and totally meaningless, so it looked like a promising situation for a short time. As it turned out I was going to spend thirty-five years and twelve days at IBM, almost from the beginning to the day when IBM decided that successful research was no longer going to be carried on in that division.
"Why is geometry often described as ""cold" and ""dry?" One reason lies in its inability to describe the shape of a cloud, a mountain, a coastline, or a tree. Clouds are not spheres, mountains are not cones, coastlines are not circles, and bark is not smooth, nor does lightning travel in a straight line."
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