Thursday, July 16, 2009

Holistic Theorem - Wolfram Demonstrations Project

Holistic Theorem - Wolfram Demonstrations Project:
"Holistic Theorem" from the Wolfram Demonstrations Project

The Wolfram Demonstrations project today released my peer reviewed dynamic illustration of the "Holistic Theorem" which is the basis of my unity of purpose article which argues that it is in the self interest of financial institutions to welcome mandatory clearing of financial derivatives. Its key proposition is that:
"'The more people participate in a system, the more it makes sense for a central authority to mediate their relationships/communication; no matter what the cost for setting up this central authority, as the number of participants increases, this cost is dwarfed by the benefits of centralized mediation on a linear versus quadratic basis'."

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