Re: fuzzy finance


Subject: Re: fuzzy finance
From: Will Dwinnell (predictor@compuserve.com)
Date: Thu Mar 02 2000 - 12:05:31 MET


I (Will Dwinnell) wrote:
"I was just thinking that, in the end, a buyer pays only a single price. Certainly, before
the transaction, available information may allow us to infer some distribution of price
values, but both probability and fuzzy logic deal in distributions. Once the transaction has
occurred, however, the price is known, which makes this seem more like a probability issue to
me."

Paul Victor Birke wrote:
"Well, while there is only one finite price at a given time, there could have been >>others<<
!"

Right, but that is practically the definition of a probability problem: "Whole there is only
one face on the die showing, the could have been others". I am not saying that fuzzy logic
would not be useful in financial analysis, but the fundamental process of living with limited
information (beforehand) about specific events which have definite outcomes sounds like
probability.

Will Dwinnell
predictor@compuserve.com

############################################################################
This message was posted through the fuzzy mailing list.
(1) To subscribe to this mailing list, send a message body of
"SUB FUZZY-MAIL myFirstName mySurname" to listproc@dbai.tuwien.ac.at
(2) To unsubscribe from this mailing list, send a message body of
"UNSUB FUZZY-MAIL" or "UNSUB FUZZY-MAIL yoursubscription@email.address.com"
to listproc@dbai.tuwien.ac.at
(3) To reach the human who maintains the list, send mail to
fuzzy-owner@dbai.tuwien.ac.at
(4) WWW access and other information on Fuzzy Sets and Logic see
http://www.dbai.tuwien.ac.at/ftp/mlowner/fuzzy-mail.info
(5) WWW archive: http://www.dbai.tuwien.ac.at/marchives/fuzzy-mail/index.html



This archive was generated by hypermail 2b25 : Thu Apr 06 2000 - 15:59:47 MET DST