Financial markets generate a type of risk which is rather unusual, in that there are lots of extreme events (“outliers”): either the market is very calm, or stormy; there does not seem to be a “normal” level of uncertainty. This raises the questions as to whether humans, or artificial agents (machine learning), are well prepared for it, and if not, what to do about it.
Leverhulme International Professorship in Neuroeconomics at the University of Cambridge Faculty of Economics
