Epstein Secrets

wer tail regions, with a separation between the 'rich' and 'super-rich', see for example [Borges 2002,

who is able to model bubbles with a degree of precision. The use of statistical mechanics in economics is even more frustrating. Merton, Black and Scholes cherry-picked the diffusion equation from thermodynamics while completely ignoring its statistical mechanical roots and derivation. They then sledge

for the last two centuries. Almost all the other rich countries have followed a different path. In the

work was largely forgotten. The use of random walks in finance was rekindled and ultimately led to the option pricing formulae of Merton, Black and Scholes. Unfortunately the random walk process has been removed from it's many body background, and individual prices are treated as moving randomly isolat

figure. He likes people to think that he is very rich, and he cultivates this air of aloofness. The wh

ff. To trade options, one had to value them, and to value them, one needed to be able to master such abstruse mathematical confections as the Black- Scholes option-pricing model. For Epstein, breaking down such models was pure sport, and within Just a few years he had his own stable of clients. "He was n