An irreverent look at how randomness influences our lives, and how our successes and failures are far more dependent on chance events than we recognize.

1102 pages Prentice Hall; 2 edition (May 1972) English

Though financial models imitate the style of physics and employ the language of mathematics, ultimately they deal with human beings. There is a fundamental difference between the aims and potential achievements of physics and those of finance. In physics, theories aim for a description of reality; in finance, at best, models can shoot only for a simplistic and very limited approximation to it. When we make a model involving human beings, we are trying to force the ugly stepsister's foot into Cinderella's pretty glass slipper. It doesn't fit without cutting off some of the essential parts. Physicists and economists have been too enthusiastic to acknowledge the limits of their equations in the sphere of human behavior which of course is what economics is all about. Models.Behaving.Badly includes a personal account of Derman's childhood encounters with failed models, the oppressions of apartheid and the utopia of the kibbutz. He describes his experience as a physicist on Wall Street, the models quants generated, the benefits they brought and the problems, practical and ethical, they caused. Derman takes a close look at what a model is, and then highlights the differences between the successes of modeling in physics and its failures in economics. Describing the collapse of the subprime mortgage CDO market in 2007, Derman urges us to stop the naïve reliance on these models, and offers suggestions for mending them. This is a fascinating, lyrical, and very human look behind the curtain at the intersection between mathematics and human nature.

This compact and original exposition of optimal control theory and applications is designed for graduate and advanced undergraduate students in economics. It presents a new elementary yet rigorous proof of the maximum principle and a new way of applying the principle that will enable students to solve any one-dimensional problem routinely. Its unified framework illuminates many famous economic examples and models. This work also emphasizes the connection between optimal control theory and the classical themes of capital theory. It offers a fresh approach to fundamental questions such as: What is income? How should it be measured? What is its relation to wealth? The book will be valuable to students who want to formulate and solve dynamic allocation problems. It will also be of interest to any economist who wants to understand results of the latest research on the relationship between comprehensive income accounting and wealth or welfare.

This book is intended for medical students and advanced undergraduates such as physicists and mathematicians with inter-disciplinary interests, biophysicists, medical physicists, applied mathematicians and others who wish to understand medicine in mathematical terms as well as current mathematical applications in physiology and medicine. The mathematical presentation is clear and self-contained.This book, representing 15 years of work at RAND Corporation and USC on chemotherapy, pharmacokinetics and nuclear medicine, attempts to direct medical scientists towards mathematical aspects of problems in medicine. The book begins with an introduction to compartmental models and matrix theory, highlighting the advantages of the approach. Discussions on how questions in observations and testing lead to multi-point boundary value problems are presented. The potentials of the digital computer in the bio-medical field are examined. A new approach -- dynamic programming -- to overcome clinical constraints is covered in detail. The reader should obtain a broad impression of where future research opportunities in the biochemical field lie.

The numerical, discrete element, Discontinuous Deformation Analysis (DDA) method was developed by Dr. Gen-hua Shi while he was working at the University of California, Berkeley, under the supervision of Prof. Richard E. Goodman in the late 1980s. Two-dimensional DDA was published in 1993 and three-dimensional DDA in 2001. Since its publication DDA has been verified, validated and applied in numerous studies worldwide and is now considered a powerful and robust method to address both static and dynamic engineering problems in discontinuous rock masses. In this book Yossef H. Hatzor and Guowei Ma, co-chairs of the International Society for Rock Mechanics (ISRM) Commission on DDA, join Dr. Shi in authoring a monograph that presents the state of the art in DDA research. A comprehensive discussion of DDA development since its publication is provided in Chapter 1, followed by concise reviews of 2D and 3D DDA in chapters 2 and 3. Procedures to select geological and numerical input parameters for DDA are discussed in Chapter 4, and DDA validation and verification is presented in Chapter 5. Applications of DDA in underground and rock slope engineering projects are discussed in chapters 6 and 7. In Chapter 8 the novel contact theory recently developed by Dr. Shi is published in its complete form, for the first time. This book is published within the framework of the ISRM Book Series and is the contribution of the ISRM DDA Commission to the international rock mechanics community.