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The Ergodicity Problem in Economics (nature.com)
1 point by KKKKkkkk1 on Jan 19, 2020 | hide | past | favorite | 1 comment



'Ergodicity' was solved by Bellman with multi-stage sequential decision problems. There's no breakthrough here. If you leave out key parts of the problem like bankruptcy or finite capital or opportunity cost, surprise surprise, naive greedy expected value maximization gives you the wrong answer.

"Pray, Mr. Babbage, if you put into the machine wrong figures, will the right answers come out?"




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