Modeling Rational Turbulence
Kent Osband, RiskTick LLC
Fair pricing in financial markets requires agents to treat prices like probability forecasts and to update their beliefs using Bayes’ rule. When risks are stable, rational learning is relatively smooth and prices behave as standard theory says they should. When risks change abruptly enough, rational learning creates market turbulence, analogous to the turbulence in fast-moving fluids. This session shows how MATLAB models can help explore rational turbulence.
Recorded: 23 May 2013
Featured Product
MATLAB
Up Next:
Related Videos:
Select a Web Site
Choose a web site to get translated content where available and see local events and offers. Based on your location, we recommend that you select: .
You can also select a web site from the following list
How to Get Best Site Performance
Select the China site (in Chinese or English) for best site performance. Other MathWorks country sites are not optimized for visits from your location.
Americas
- América Latina (Español)
- Canada (English)
- United States (English)
Europe
- Belgium (English)
- Denmark (English)
- Deutschland (Deutsch)
- España (Español)
- Finland (English)
- France (Français)
- Ireland (English)
- Italia (Italiano)
- Luxembourg (English)
- Netherlands (English)
- Norway (English)
- Österreich (Deutsch)
- Portugal (English)
- Sweden (English)
- Switzerland
- United Kingdom (English)
Asia Pacific
- Australia (English)
- India (English)
- New Zealand (English)
- 中国
- 日本Japanese (日本語)
- 한국Korean (한국어)