The new paradigm is to be found in a widening of the concept of probability to mind trading, hedging and risk management issues. The traditional probabilistic framework by failing to account for risk and uncertainty, perpetuates dangerous expectations based fallacies. BICs (http://tinyurl.com/cyxhpa) theory are already a comprehensive theory to help effectively navigate these issues. See:http://www.
"Economist Profiles In the wake of the worst financial crisis since the Great Depression, economists are racing to provide policy makers with the tools they need to avert a repeat -- a process that some believe could require a revolution in economic thought. In doing so, they are building on the work of colleagues who saw early on the dangers presented by an unstable financial sector. Here are some of the people who did the early work, and who are now using it to build new models of the economy."
- Crisis Compels Economists To Reach for New Paradigm - WSJ.com (view on Google Sidewiki)
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