What is a power law? Why should investors bother about power laws? What is Zipf’s law? What…

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What is a power law? Why should investors bother about power laws?

What is Zipf’s law? What modifications were suggested by Mandelbrot to the Zipf’s law?

Discuss the idea of self-organised criticality.

What are the key results of the classical capital market theory? Empirically, what are the shortcomings of the classical capital market theory?

What are the central characteristics and properties of a complex adaptive system?

What is the empirical evidence on the complex adaptive model?

What are the implications of the complex adaptive model?

Why does Niall Ferguson argue that financial evolution is a lot like natural selection?

What are the differences between natural evolution and financial evolution?

Discuss the following aspects of animal spirits, viz. confidence, fairness, corruption and antisocial behaviour, money illusion, and stories, as identified by George Akerlof and Robert Shiller in their book Animal Spirits.