mandelbrotian randomness in finance, examples of practical uses?

[eastbay]

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i'll answer the main question:

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what do you mean by mandelbrotian randomness

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i mean alternatives to stochastic models where the underlying assumptions are too stringently normal (even when jumps & other variations are introduced).

i am looking for a book i think i found in the book mandelbrot wrote on fractals in finance and that is on order being shipped to me.

the goal is to use power laws instead of the distributions where the probability of highly unlikely events decreases exponentially.

that is what i mean by mandelbrotian randomness.


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I think that is probably not the best description for the exceptionally general ideas you are talking about.

You might want to just say "non-Gaussian randomness" instead.

eastbay