News Focus

Death by the Numbers

See allHide authors and affiliations

Science  26 Feb 1999:
Vol. 283, Issue 5406, pp. 1244-1247
DOI: 10.1126/science.283.5406.1244

You are currently viewing the summary.

View Full Text

Log in to view the full text

Log in through your institution

Log in through your institution


In the clandestine world known as arbitrage, traders try to ride the internal dynamics of the market to make money whichever way the Dow goes. Hundreds of quantitative economists, mathematicians, and former physicists have been putting their skills to work in the field. The strategy seemed foolproof--until last summer's Russian financial crisis, when firms hemorrhaged billions. Was the debacle due to mathematical hubris?