Unexplainable Embracing economic chaos
15 snips
Jul 3, 2024 Physicist explores chaos theory in predicting economy, strange attractors and unpredictable patterns. Economic chaos, teaching kids about money, agent-based simulations in predicting climate change, embracing uncertainties in life.
AI Snips
Chapters
Transcript
Episode notes
Efficient Market Theory Doubt
- Doyne Farmer recalls discussing the Efficient Market Theory with his brother-in-law.
- He found the idea of perfectly rational investors implausible.
Behavioral Economics Limitations
- Behavioral economics acknowledges irrational decisions but struggles with large-scale application.
- Doyne Farmer believes his physics background offers a unique perspective.
Introduction to Chaos
- Doyne Farmer's first encounter with chaos was at a commune dinner in 1977.
- His friend, Rob, excitedly introduced him to the concept of a strange attractor.