Casa Robino

As soon as you introduce the assumption of interdependence across events, Paretian distributions tend to surface because positive feedback loops tend to amplify small initial events. // There’s another form of extreme event that also becomes more prominent in a Paretian world – this is the tendency for extreme forms of clustering in social networks // Economic value inexorably follows these social clusters. // The problem is that most of our analytical tools are designed to understand Gaussian worlds. These same tools seriously miss, or even distort, the dynamics of Paretian worlds. We need an entirely new analytical tool kit for the Paretian world.