Epstein Secrets

have the advantage." Claude Shannon [Tribus & Mclrvine 1971]. I find the last quote very reassuring. In my own opinion, though less well known than Einstein, Von Neumann ranked close to Einstein in terms of genius. Like Einstein, he didn't merely bring in a single profound new idea; but seemed to change

st is in that of finance. The earliest work on random walks was that done by the mathematician Bachelier on stock prices. Bachelier's work predates Einstein's own random walk model of Brownian motion. For half a century Bachelier's work was largely forgotten. The use of random walks in finance was rekin

nsense. However the concept of absolute value is not nonsense, it is in fact very powerful. The concept of 'negentropy' as value, as articulated by Ayres & Nair [Ayres & Nair 1984] for example, is not just basic common sense; it works as a theoretical approach, as evidenced by the models in part A. Once the

nd demand. In Handbook of Financial Markets: Dynamics and Evolution, ed. T Hens, KR Schenkhoppe, pp. 57-130. Amsterdam: Elsevier Bray A, Graham 3, Harvey C, Michaely R, 2005. Payout policy in the 21st century. Journal of Financial Economics 77,483-527. van den Berg H, 2010. Mathematical Models of Biolo

d 'common sense' and simply worked out the mathematical consequences of this fact. Thus was relativity born. Economists seem to prefer the route of Einstein's peers, forever producing more complex theories to substantiate the existence of a hypothetical aether. Science can not be built simply on common

ropy, first proposed by Georgescu-Roegen have been treated as fundamental truths. Unfortunately these precepts are trivially mistaken. The paper of Ayres & Nair [Ayres & Nair 1984] provides a typical example. I have found this paper profoundly useful in guiding my ideas as to how to link the mathematics of e

ke this naïve approach as it stands and follow the consequences through the model. With regard to management behaviour, research from Bray, Graham, Harvey and Michaely [Bray et al 2005] support the contention that maintenance of a constant dividend stream is an important priority for managers of corpo

negentropy created in the products of the firms. Essentially figures 1.3.5 to 1.3.7 bring together the economic and physical diagrams discussed in Ayres & Nair [Ayres & Nair 1984]; so that the circulation of wealth and money complies with the laws of physics as well as the laws of finance. The discussions o