In my opinion, modelling such a non-linear dynamic system as market is not possible. By not possible I mean , one will make so many simplifications and neglections on nonlinearities that the final linear (1st, second or higher order) system will be almost useless.
something like research made on gases (but calculated only in vacuum;) )
the biggest problem with those models is that they can only be used by mathematicians , and only mathematicians know where's the border of believing that if we have matrix output A , we obtain matrix output B , a this means.... etc.etc..
Slashdot Mirror
In my opinion, modelling such a non-linear dynamic system as market is not possible. By not possible I mean , one will make so many simplifications and neglections on nonlinearities that the final linear (1st, second or higher order) system will be almost useless. something like research made on gases (but calculated only in vacuum ;) )
the biggest problem with those models is that they can only be used by mathematicians , and only mathematicians know where's the border of believing that if we have matrix output A , we obtain matrix output B , a this means .... etc .etc..