Mathematical Theory

For the past few decades, the financial world has often displayed an unreasonable willingness to believe that "the model is right, the market is wrong," in spite of the fact that these theoretical machinations were largely responsible for the stock market crash of 1987, the LTCM crisis of 1998, the credit crisis of 2008, and many other blow-ups, large and small.

Everyone has a basic understanding of how the physical world works. While the story of how mathematics has been used to reveal the mysteries of the universe is familiar, the story of how it has been used to study the mind is not. In this groundbreaking book, he explains the three major approaches to formalizing thought–rules and symbols, neural networks, and probability and statistics–introducing each idea through the stories of the people behind it.