Ji Won Park’s Reviews > The Physics of Wall Street: A Brief History of Predicting the Unpredictable > Status Update

Malaney and Weinstein developed the gauge theory of economics to solve the index value problem as it related to inflation. Thinking like a physicist is an iterative process of understanding when, why, and how a model fails (the model's assumptions) and coming up with a more robust model. Inspired to write a book in grad school!

Black (of Black-Scholes-Merton model) was a physics outlaw. Farmer, Packard, and McGill brought nonlinear forecasting to high-tech derivatives trading (although the details of their work as part of Prediction Company remains an industry secret). Notably, they introduced black box models (algorithmic trading). Is AT still the dominant paradigm at D. E. Shaw, Two Sigma, Citadel? QOTD: Randomness hides structure.

Osborne wrote whole dissertations instead of proposals until one was accepted for awarding his degree. Mandelbrot wrote his dissertation without an advisor. Thorp struck it rich with Princeton-Newport.

Reads like a storybook!