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Inicio  /  Finance and Society  /  Vol: 2 Núm: 2 Par: 0 (2016)  /  Artículo
ARTÍCULO
TITULO

Response to Johnson: A random sample versus the radical event

Elie Ayache    

Resumen

Timothy Johnson?s working hypothesis in his review of my latest book, The Medium of Contingency, is that I (as well as the ?quants? involved in the derivative pricing industry) do not understand the foundations of abstract probability theory. In this response, I show that this is not the case. On the contrary, rules and protocols which are common in the derivative pricing industry, the result of which can be an extension of abstract probability theory as it now stands, seem to elude Johnson. To address these failings, I provide theoretical reflections on probability theory and its formalisms.

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