Black Swan Theory and Applications

This research is aimed at contributing to a larger research initiative, entitled “Rethinking the Foundations of Economics and Finance” that is principally being undertaken by Professor Robert F. Owen at the University of Toronto. The scientific context of the project lies within the intersection of economics, behavioral science, and complexity theory. It aims to integrate insights from various disciplines to enhance an understanding of economic phenomena of uncertainty.
The research highlights the importance of “Black Swan” events and bounded rationality for understanding the current insufficiency of micro-macro linkages. The research recognizes the interconnectivity between economics and finance and such ostensibly different fields, as medicine, biochemistry, and physics.
The analysis also highlights that conceptual closure indicates the “continuity” between microeconomics and macroeconomics, requiring a focus on the smallest elements of change in dynamic systems, termed “nanos.” The new field of nanoeconomics incorporates a dynamic respecification of fixed and sunk cost concepts, which is an essential distinction for explaining interdependent portfolio reoptimization processes, entailing asset commitment and decommitment decisions, following “news”.
The project and its result will help the host supervisor to further develop the existing research and project by deepening into the topic and its application in economics and finance.

Faculty Supervisor:

Robert F. Owen

Student:

Partner:

National University of Kyiv-Mohyla Academy

Discipline:

Sociology

Sector:

Finance and Insurance; Other

University:

University of Toronto

Program: