Somewhere out in the webosphere, look it up.
He accidentally did something all economists need to do. Make a normative assumption about data, then violate the assumption and show a contradiction.
In this case, he implicitly assumes Black Sh=holes,which does not allow a partition of the market. Then he allows a partition of noise traders, and shows the partition must eventually dissolve.
The net result is that Black Scholes is a statistical accounting identity and cannot be used as a transparent betting strategy. More economists need to take this approach, show where norm mixing in economic research leads to contradiction.
Both Cowen and Kling spot this norm mixing when they complain abut mixed elasticity norms.
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