Quantcast
Channel: MoneyScience: MoneyScience's news channel - arXiv > Recent Papers in Quant Finance
Viewing all articles
Browse latest Browse all 2696

Why Black Swan events must occur - an ontological investigation. (arXiv:1803.02570v1 [q-fin.RM])

$
0
0

We develop a first-order deductive system to show that the occurrence of Black Swan events is implied by their definition. It follows as a corollary of our theorem that any computational model of decision-making under uncertainty is incomplete in the sense that not all events that occur can be taken into account. In the context of decision theory we argue that this constitutes a stronger sense of uncertainty than Knightian uncertainty.


Viewing all articles
Browse latest Browse all 2696

Trending Articles