Summary Ergodicity Economics Pseudoscience or Future Economic Science arxiv.org
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One Line
Ole Peters proposes ergodicity economics as a new approach to economics, questioning expected utility theory and promoting optimal portfolio selection.
Slides
Slide Presentation (8 slides)
Key Points
- 'Ergodicity Economics' is claimed to be pseudoscience by the author
- The author argues that 'ergodicity economics' has not produced falsifiable implications
- The author criticizes 'ergodicity economics' for lacking testable predictions and progress
- Indicators of pseudoscience, as defined by Wikipedia, are applied to 'ergodicity economics'
- The author expresses concerns about researchers attacking economics based on ignorance and misunderstanding
Summaries
23 word summary
Ole Peters introduces "ergodicity economics" as an alternative to mainstream economic theory, challenging expected utility theory (EUT) and advocating for optimal portfolio selection.
41 word summary
Ole Peters and his collaborators propose a new approach to economics called "ergodicity economics" as an alternative to mainstream economic theory. This theory challenges the commonly used expected utility theory (EUT) and suggests that the optimal portfolio should be chosen to
196 word summary
In a series of papers, Ole Peters and his collaborators propose a new approach to economics called "ergodicity economics" which they claim offers a more parsimonious and less subjective alternative to mainstream economic theory. However, this paper argues that ergodic
Ergodicity Economics is a theory that challenges the commonly used expected utility theory (EUT) in economics. The author, who holds an economics PhD and has published numerous research articles in the field, argues that while EUT is a useful benchmark
Ergodicity Economics (EE) suggests that the optimal portfolio should be chosen to maximize the long run geometric average growth rate. This is because as the investment horizon approaches infinity, the log geometric average growth rate converges to the mean. The mean
Some economists have criticized the 'growth optimal' approach because it only applies to logarithmic utility. However, this critique is not convincing to those who reject expected utility theory. Others have criticized ergodicity economics (EE) for misunderstanding expected utility theory.
Ergodicity Economics (EE) is criticized as pseudoscience due to several indicators. One indicator is the use of vague, exaggerated, or untestable claims, such as the claim that EE resolves fundamental problems in decision theory, game theory