Michael D. Lipkin, The Fu Foundation School of Engineering and Applied Sciences, Colubmia University, New York, NY, will present seminar. Host: Professor Erich Mueller

Seminar Title: The Curious Case of Non-Equilibrium Finance

 Abstract: When markets are shocked, they can exhibit "high"-frequency price fluctuations. Equilibrium thinking, in other words classical finance, fails here. In particular converse trading strategies can both make money.  A useful theoretical approach is to partition the price/trading space by frequency.  We show evidence for viewing these conditions from the paradigm of physical turbulence. (This is work with T. Leung).

Poster available.