Friday, May 8, 2015
Rates or price or quantity?
What matters, it seems to be, is how differences in sequences make causality. The bots ultimately group sequences in hierarchy so each group cause one difference. Then the number line more or less is notched with one difference between notches. Then the variation in things, within each group, and the probability of those things are matched along the line. Then Ito's calculus works because one can weight a sequential difference by probability. There is an intimate connection between entropy and Ito's 'almost everywhere'. The network of bots just keep the system within Ito's assumptions.
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