O'Reilly logo

The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street by Justin Fox

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 4: A Random Walk from Paul Samuelson to Paul Samuelson

The proposition that stock movements are mostly unpredictable goes from intellectual curiosity to centerpiece of an academic movement.

When Paul Samuelson arrived at the Massachusetts Institute of Technology in 1940, allowed to slip away from Harvard by an economics department chairman who valued neither math geeks nor Jews, the engineering-dominated school didn’t even offer a Ph.D. in economics. Within a decade, MIT had built a department around Samuelson that left Harvard’s in the shade.

One recent history of economic thought (Jürg Niehans’s A History of Economic Theory) devotes twenty-four pages to Samuelson’s ideas. Adam Smith only gets thirteen. [1] Samuelson’s work ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required