He did a paper on the price of cotton in exchanges obeying a 1/6 power law. When confronted with this, the powers that be said, effectively, "we don't have the tools for that" and didn't use any different tools than they were using to measure risk. See The Black Swan for more examples.
He did a paper on the price of cotton in exchanges obeying a 1/6 power law. When confronted with this, the powers that be said, effectively, "we don't have the tools for that" and didn't use any different tools than they were using to measure risk. See The Black Swan for more examples.
Markets don't fit normal distributions.