It is easy for mathematicians and economists to come up with models and theories as to what went wrong,but is completely different when it comes to predict who rational or irrational people would behave given a situation where they are following a group behaviour ,like assuming they own a better life than ordainary motals with ability to spend as they wish and no thought for the consequences.Again groups may be many and involves indivoduals making decisions on their own which dampen behaviour.
Obviously, mathematicians are not stupid and aware of many parameters that affect the market every single day. They even know more about market than those people who just make assumptions but in reality do not have the faintest idea of what it's like thinking logically and rigorously like a true mathematician.
@vkpillay In truth, it is not that different at all, and that is where the subject of game theory came into play. Mathematicians such as the one in this video deal with PROBABILITIES, meaning that they are not 100% sure of the outcome of an event, but can determine to a reasonable extent the chances it will happen.. Reguardless of way you may think many of the world's problems can only be solved through mathematical means.
There is no realm of Platonic mathematical truths. Contextual cause and effect is the only type that there is. People are not mathematical and cannot be fully explained with mathematical truisms. If math can predict everything and explain economic behaviour, then socialism and the Soviet Union would have been a great success.
It is easy for mathematicians and economists to come up with models and theories as to what went wrong,but is completely different when it comes to predict who rational or irrational people would behave given a situation where they are following a group behaviour ,like assuming they own a better life than ordainary motals with ability to spend as they wish and no thought for the consequences.Again groups may be many and involves indivoduals making decisions on their own which dampen behaviour.
vkpillay 2 years ago 3
@vkpillay
Obviously, mathematicians are not stupid and aware of many parameters that affect the market every single day. They even know more about market than those people who just make assumptions but in reality do not have the faintest idea of what it's like thinking logically and rigorously like a true mathematician.
alquiora 1 year ago
@vkpillay In truth, it is not that different at all, and that is where the subject of game theory came into play. Mathematicians such as the one in this video deal with PROBABILITIES, meaning that they are not 100% sure of the outcome of an event, but can determine to a reasonable extent the chances it will happen.. Reguardless of way you may think many of the world's problems can only be solved through mathematical means.
hustlerprince 6 months ago
There is no realm of Platonic mathematical truths. Contextual cause and effect is the only type that there is. People are not mathematical and cannot be fully explained with mathematical truisms. If math can predict everything and explain economic behaviour, then socialism and the Soviet Union would have been a great success.
corymd3470 3 years ago
@corymd3470
You're too naive. I bet your mathematics level has never gone beyond that of high school.
alquiora 1 year ago
Behavioural finance is the future of economics. You need to understand what's in the human nature (mind) to make accurate predictions.
kensai7gr 3 years ago 6