293 | Doyne Farmer on Chaos, Crashes, and Economic Complexity

2282.602 - 2311.066 Doyne Farmer

For example, if you want to predict how the bid-ask spread in a financial market, that is the difference between the buying and selling price, how does that depend on the way orders are flowing into the market? You can calculate it with a zero intelligence model. The orders flowing in could be sand grains coming in at random. But you quickly realize, oh, no, we need to refine it.