2 papers
q-fin.RM2019
An Unethical Optimization Principle
Nicholas Beale, Heather Battey, Anthony C. Davison +1
If an artificial intelligence aims to maximise risk-adjusted return, then under mild conditions it is disproportionately likely to pick an unethical strategy unless the objective f…
q-fin.TR2019
Dynamics of Value-Tracking in Financial Markets
Nicholas CL Beale, Richard M Gunton, Kutlwano L Bashe +2
The efficiency of a modern economy depends on what we call the Value-Tracking Hypothesis: that market prices of key assets broadly track some underlying value. This can be expected…