Google News home page serves up a link to Bloomberg's:

"Everything We’ve Learned About Modern Economic Theory Is Wrong

Ole Peters, a theoretical physicist in the U.K., claims to have the solution. All it would do is upend three centuries of economic thought."

Ole Peters, a theoretical physicist in the U.K., claims to have the solution. All it would do is upend three centuries of economic thought."

I did read the article and even skimmed the journal paper which is a click or two away. AFAICT Dr. Peters, like a 6-year old who's found his lost toy hammer, has just rediscovered Kelly's Criterion — a simple mathematical fact known to anyone who's Googled "gambling strategy" or "portfolio theory." (Before awarding kudos to "Kelly" be aware that the first publication on the underlying principle comes from the 18th century Daniel Bernoulli (who was, like Peters, a theoretical physicist). And anyway, most market analysis involves

*many actors*, where the Bernoulli-Kelly result is drowned out (cf. Central Limit Theorem).

Am I wrong?

To paraphrase Mark Antony, I start this thread to bury Dr. Peters, not to praise "Modern Economic Theory" in general.