Jean-Philippe Bouchaud, financial engineer

“We need a theory that can model the irrationality of traders and consumers: a theory that includes essential elements of how Homo economicus behaves. We don’t have a theory like that. Which is surprising, because it seems so obvious that there are processes driving market prices out of equilibrium. Mimicry, for example, can give rise to collective phenomena that are difficult to control. [..] But this is research on the fringe of economics. These ideas haven’t percolated into mainstream economics. There are no textbooks, and it isn’t taught at university. That means the old beliefs are still being perpetuated”.