Derman

The idea that significant arbitrage opportunities are unlikely to exist and certainly do not persist is precisely the mechanism behind the Black-Scholes option-pricing model that Mr. Derman admires as a financial model behaving pretty well.

Physics Envy Burton G. Malkiel 2011

Throughout "Models Behaving Badly," Mr. Derman treats us to vignettes from his interesting personal history, which gave him a front-row seat for more than one model's misbehavior.

Physics Envy Burton G. Malkiel 2011

Sampling from models that behave well, Mr. Derman gives an eloquent description of James Clerk Maxwell's electromagnetic theory in a chapter titled "The Sublime."

Physics Envy Burton G. Malkiel 2011

The basic problem, according to Mr. Derman, is that in physics you're playing against God, and He doesn't change His laws very often.

Physics Envy Burton G. Malkiel 2011

Trained as a physicist, Emanuel Derman once served as the head of quantitative analysis at Goldman Sachs and is currently a professor of industrial engineering and operations research at Columbia University.

Physics Envy Burton G. Malkiel 2011

EMM does not, as Mr. Derman says, "stubbornly assume that all uncertainty about the future is quantifiable."

Physics Envy Burton G. Malkiel 2011

Probably not as easily, but it seems not to be completely impossible; look at David Friedman and Emanuel Derman.

Earth to Educators: People Hate School, Bryan Caplan | EconLog | Library of Economics and Liberty 2009

Emanuel Derman speculates what would happen if the Federal Reserve and the TSA switched roles.

Boing Boing 2009

When we make models involving human beings, Mr. Derman notes, we are trying to force the ugly stepsister's foot into Cinderella's pretty glass slipper.

Physics Envy Burton G. Malkiel 2011

In another chapter, titled "The Absolute," he outlines Spinoza's "Theory of Emotions"—a description of the nature of emotions that did for man's inner life, Mr. Derman says, "what Euclid did for geometry."

Physics Envy Burton G. Malkiel 2011