>I have little faith that formal models clarify much or avoid misrepresentations >of reality. I have asked the list for examples of formal models that have >taught them anything that they could not have learned by other means. I think >Peter Dorman may have been the only one who responded.
I've yet to see a decent explanation of risk-neutral pricing (most normally seen in the context of the Black-Scholes and/or Cox/Ingersoll/Ross options pricing models, but a very powerful economic idea of very general application) which didn't involve some sort of formalism. I'm not saying it can't be done, but I don't know how one would go about it. dd ___________________________________________________ Email Disclaimer This communication is for the attention of the named recipient only and should not be passed on to any other person. Information relating to any company or security, is for information purposes only and should not be interpreted as a solicitation or offer to buy or sell any security. The information on which this communication is based has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All expressions of opinion are subject to change without notice. All e-mail messages, and associated attachments, are subject to interception and monitoring for lawful business purposes. ___________________________________________________
