Second Life Moguls

The Black Scholes model hasn't even been proven to work. Its simply an options pricing model thrown around in academia. The best way to regulate the exchange rate is to make L$ inflows equal to L$ outflows.

Aimee Weber is both the Next America's Top Model, and the new American Idol. I'm not sure she's a mogul though. Aren't those the things you things you ski on and try to jump? Aimee's not much fun to ski on. After you knock her over, you realize she's too short. Nice hills though

Screw 'em, Aimee. I just got that call from HBO. They want to go ahead and do that one hour special. You're in!

I am SL's top mojo (jojo)

They finally agreed to do an episode of Real Sex about your strange fixation on food and the weird sexual gratification you get from typing LOL a lot?

You are SL's top mofo.

YOU are SL's top Rolo.



(<3 your caramel goodness)

From http://nobelprize.org/economics/laureates/1997/press.html

"This year's laureates, Robert Merton and Myron Scholes, developed this method in close collaboration with Fischer Black, who died in his mid-fifties in 1995. These three scholars worked on the same problem: option valuation. In 1973, Black and Scholes published what has come to be known as the Black-Scholes formula. Thousands of traders and investors now use this formula every day to value stock options in markets throughout the world. Robert Merton devised another method to derive the formula that turned out to have very wide applicability; he also generalized the formula in many directions."

I think the use of this model is definately wider than 'academia'?



The only way to answer this is to ask.

What is the cost of a Burger in Second Life? How does this compare the the price of a burger in the USA? How do you regulate the creation/consumption of burgers in SL?

On a slightly different tangent ... this should give you the 'true' exchange rate

Regards
Leon

No, its far simpler than that. Just make sure the number of L$s created equals the number destroyed in a certain (controlled) time period.

Thats it. The free market will take care of the rest.

Darn, just when it gets interesting, I have to leave for a few hours

Do you actually believe Second Life is a free market?

Later
Leon

ABSOLUTELY!!!!

Kupo..... po?

Me or Aimee?

(btw, did you see that one episode with the machines? omg, crazy)

(and hot)

Then $L would get rarer as the population grows, and the usual online world 'churn' of residents leaving (while still holding $L) would make it even rarer still.

Might be cool, though.

Get $L so rare, that each are exchangeable for clunky, real world, solid gold coins with King Philip on them.

Like pirate money!

AAAAAaaaaaaarrrrrgggggg, Matey!!!!

A Pirate's the Life for Me!!!

Black and Scholes suffers from the problem a lot of other models do - they assume that price action will conform to a standard distribution. It doesn't. While serial price action does have a degree of 'memory' or future action is in part based on the past, it most certainly does *not* follow the oh-so-familiar bell curve.

For one thing, most excursions past two sigma are way more common in futures and other instruments. These 'outliers' are the things that kill most systems designed to hit trends and try to make money using something stupid like crossing moving averages or some other lagging indicator.

But I've said too much.

You mean anorexia, heroin addiction, and having a venerial disease that the CDC can't identify?

Fashion models, sure - price prediction models, no

You bastard, I spewed my water when I read that. hahahah.

of course she does - she gets stuff that is free... and markets it!

*snurf*

BEST POST EVER!

Maxx, agreed btw!

L

Agreed. That was a seriously funny association ))

L

Google says: Snurf is the long awaited pill form of 10X extractions of Fevizia, Palenzia,
and De la Amazon - A herbal XTC!?!?

You okay over there Ordinal?

L

How about a log-normal distribution, then?