In his recent book Bad Beliefs and Why They Happen to Good People, Neil Levy argues that conspiracy theories result from the same rational processes underlie epistemic success. While we think many of Levy’s points are valuable, like criticism myth individual cognition emphasis on importance one’s social environment, believe account overlooks some important aspects. We argue deference is an acti...

III. Lévy flights 9 A. Underlying random walk process 9 B. Propagator and symmetries 10 C. Presence of external potentials 12 1. Harmonic potential 12 2. Steeper than harmonic potentials 13 D. First passage and first arrival of Lévy flights 15 E. Leapover properties of Lévy flights 17 F. Kramers problem for Lévy flights 18 G. More on the ”pathology” 20 H. Bi-fractional transport equations 22 I....

We propose the model, which allows us to approximate fractional Levy noise and fractional Levy motion. Our model is based (i) on the Gnedenko limit theorem for an attraction basin of stable probability law, and (ii) on regarding fractional noise as the result of fractional integration/differentiation of a white Levy noise. We investigate self-affine properties of the approximation and conclude ...

We consider the numerical solution of one type integro-differential equation by a probability method based on fundamental martingale mixed Gaussian processes. As an application, we try to simulate estimation ruin with an unknown parameter driven not classical Levy process, but fractional Brownian motion.

Levy and Levy (Management Science 2002) present data that, according to their claims, violate prospect theory. They suggest that prospect theory’s hypothesis of an S-shaped value function, concave for gains and convex for losses, is incorrect. However, all the data of Levy and Levy are perfectly consistent with the predictions of prospect theory, as can be verified by simply applying prospect t...