Colloquium Abstract

Monday, October 13, 2008 • 3:30 PM • Robert N. Noyce Conference Room, SFI

Larry Blume Cornell University

Natural Selection in Markets

Markets are ecologies of trading rules, in which behaviors can survive and thrive or fail and die out. In this talk I will survey work that David Easley and I have done over the past several years which attempts to identify the fitness measure and study the selection process induced by the laws of supply and demand. I will conclude with a recent application of our work to the evolution of the market price of risk and the equity premium in the 70 years since the Great Contraction of the 1930s.

Host: Willemien Kets