Physics of Finance: Gauge Modelling in Non-Equilibrium Pricing

by Kirill Ilinski

One of the newest and most controversial approaches to financial pricing. In Physics of Finance the author applies the methods of theoretical physics to financial economics to develop an altogether original method for pricing financial assets that steps outside the equilibrium paradigm in finance.
In Physics of Finance, basic assumptions underlying equilibrium pricing are re-examined, the risk factors hidden in the implications of equilibrium theory and the potential profit in unstable markets are discussed and gauge modelling is introduced.

Genres: Physics, Finance

340 pages, Hardcover

First published February 15, 2001

Reviews

[Joel · Rating 1 out of 5]

This book is a ripoff.

I have a PhD in differential geometry, during which I spent a lot of time studying fiber bundles of all kinds, and I have now been working for many years as a quant in a bank. And yet this book does not make any sense.

This is an example of completely misguided academic efforts to contribute to finance, but the conclusions are completely useless for practitioners, and at the same time will not teach much to academics interested in finance.