- December 19th, 2005, 7:32 am
- Forum: Technical Forum
- Topic: Is Energy a Giffen good?
- Replies:
**8** - Views:
**127805**

<t>I think that you are describing Google stock as being in a kind of a 'bubble', although I admit that I don't know the definition of a bubble. I believe that bubbles are usually a temporary phenomenon. Does this mean that a good will only ever be a Giffen good temporarily?The Bread example implies...

- December 15th, 2005, 12:32 am
- Forum: Technical Forum
- Topic: Is Energy a Giffen good?
- Replies:
**8** - Views:
**127805**

Hi Alan,I learnt about Giffen goods from the wikipedia article also. Do you think that Giffen goods are possible in the real world or are they just an interesting theoretical concept?

- December 14th, 2005, 8:58 am
- Forum: Technical Forum
- Topic: Is Energy a Giffen good?
- Replies:
**8** - Views:
**127805**

<t>Giffen goods have positive price elasticity of demand. The theory is that for certain staple goods (e.g. bread) price rises lead to reduced disposable income amongst poor consumers who then are forced to forgo more expensive sustitutes (e.g. meat) and buy more of the staple. I understand that thi...

- December 14th, 2005, 1:45 am
- Forum: The Quantitative Finance FAQs Project
- Topic: Gambling and trading, what is the difference?
- Replies:
**53** - Views:
**249135**

<t>I would say the main difference is that gamblers invest on an outcome where all participants have access to the same information regarding the odds of the game, or at leat they should if the game is fair.Trading involves investments on outcomes where not all information is known. Participants may...

- December 12th, 2005, 8:00 am
- Forum: Forum and Website Bugs and Suggestions
- Topic: Wiki for FAQ forum
- Replies:
**10** - Views:
**132808**

Would it be possible to turn the FAQ forum into a wiki (i.e. like wikipedia), so that an agreed answer to each question posted can be allowed to gradually evolve over time. At the moment it is very difficult to pick out any definative answers from the threads.

- December 12th, 2005, 5:53 am
- Forum: The Quantitative Finance FAQs Project
- Topic: What is the "Market Price of Risk"?
- Replies:
**13** - Views:
**245563**

<t>I always thought that the price of risk was the difference between the price at which a trader would buy the product and the price which your model gives you. This would have to be adjusted if the trader took a bigger cut due to a trade being imperfectly understood/unhedgable.Can we imagine a the...

- December 12th, 2005, 5:18 am
- Forum: Brainteaser Forum
- Topic: Describing Numbers
- Replies:
**49** - Views:
**131546**

<t>I think Aaron gives the simplest/best explanation to resolve the paradox. I've tried to rewrite it more succinctly and I just end up with a headache.Self-referential descriptions do not necessarily cause problems, as shown by Aaron's example.I just had an idea for a succinct argument - To accept ...

- December 10th, 2005, 3:30 am
- Forum: Brainteaser Forum
- Topic: Describing Numbers
- Replies:
**49** - Views:
**131546**

<t>I think I understand the 'self-referential' concept, even if I don't understand exactly why this will necessarily lead to inconsistency. ( I didn't take Foundations of Logic at Uni).Regarding your definition of what describe means (i.e. assign a mapping from letters to digits). If you apply this,...

- December 9th, 2005, 9:23 am
- Forum: Brainteaser Forum
- Topic: Describing Numbers
- Replies:
**49** - Views:
**131546**

<t>OK, I agree that there is a flaw in my arguement.I can't say that I've ever read about Russells paradox, so I may be reinventing the wheel here (please post any links if you know of a good online essay/book on this topic).Is "infinity" excluded from "numbers that can be described in 100 words or ...

- December 9th, 2005, 8:50 am
- Forum: Brainteaser Forum
- Topic: Probability Question
- Replies:
**13** - Views:
**133474**

<t>cononv - I agree with your logic. If the correct answers are truely distributed at random, you can't guarentee anything.But, what if the question setter decides to cast an eye over the distribution that his randomiser spits out? Most people would reject a sample which 'doesn't look random enough'...

- December 8th, 2005, 9:57 am
- Forum: Brainteaser Forum
- Topic: Describing Numbers
- Replies:
**49** - Views:
**131546**

<t>CactusMan, Your argument is a proof by contradiction. Your assumption is that there exists a number, n, such that "n is the largest number...".m is a larger number which also satisfies the the "...can be described in less than 100 words" condition. This is a contradiction. Therefore, there is no ...

- December 8th, 2005, 2:48 am
- Forum: Brainteaser Forum
- Topic: Probability Question
- Replies:
**13** - Views:
**133474**

<t>I think the reason behind this strategy is that by choosing a single letter (e.g. 'C'), your expectation is that you will get 1/5 of the points available (as you would even with a random strategy). However, due to the random nature of the correct answers, you are 'guarenteeing' that you will not ...

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