In this chapter, one considers finance at its very foundations, namely, at the place where assumptions are being made about the ways to measure the two key ingredients of finance: risk and return. It is well known that returns for a large class of assets display a number of stylized facts that cannot be squared with the traditional views of 1960s financial economics (normality and continuity assumptions, i.e. Brownian representation of market dynamics). Despite the empirical counterevidence, normality and continuity assumptions (...) were part and parcel of financial theory and practice, embedded in all financial practices and beliefs. Our aim is to build on this puzzle for extracting some clues revealing the use of one research strategy in academic community, model tinkering defined as a particular research habit. We choose to focus on one specific moment of the scientific controversies in academic finance: the ‘leptokurtic crisis’ opened by Mandelbrot in 1962. The profoundness of the crisis came from the angle of the Mandelbrot’s attack: not only he emphasized an empirical inadequacy of the Brownian representation, but also he argued for an inadequate grounding of this representation. We give some insights in this crisis and display the model tinkering strategies of the financial academic community in the 1970s and the 1980s. (shrink)

According to the conventionalist doctrine of space elaborated by the French philosopher-scientist Henri Poincaré in the 1890s, the geometry of physical space is a matter of definition, not of fact. Poincaré's Hertz-inspired view of the role of hypothesis in science guided his interpretation of the theory of relativity (1905), which he found to be in violation of the axiom of free mobility of invariable solids. In a quixotic effort to save the Euclidean geometry that relied on this axiom, Poincaré extended (...) the purview of his doctrine of space to cover both space and time. The centerpiece of this new doctrine is what he called the "principle of physical relativity," which holds the laws of mechanics to be covariant with respect to a certain group of transformations. For Poincaré, the invariance group of classical mechanics defined physical space and time (Galilei spacetime), but he admitted that one could also define physical space and time in virtue of the invariance group of relativistic mechanics (Minkowski spacetime). Either way, physical space and time are the result of a convention. (shrink)

This chapter discusses the roles of ether and electrons in relativity theory. One of the most radical moves made by Albert Einstein was to dismiss the ether from electrodynamics. His fellow physicists felt challenged by Einstein’s view, and they came up with a variety of responses, ranging from enthusiastic approval, to dismissive rejection. Among the naysayers were the electron theorists, who were unanimous in their affirmation of the ether, even if they agreed with other aspects of Einstein’s theory of relativity. (...) The eventual success of the latter theory (circa 1911) owed much to Hermann Minkowski’s idea of four-dimensional spacetime, which was portrayed as a conceptual substitute of sorts for the ether. (shrink)

The paper is a dialogue between a conservation architect who works on medieval churches and an analytic aesthetician interested in the principles underlying restoration and conservation. The focus of the debate is the explanatory role of narrative in understanding and justifying elective changes to historic buildings. For the architect this is a fruitful model and offers a basis for a genuinely new approach to a philosophy of conservation. The philosopher, however, has been sceptical about appeals to narrative in other contexts (...) (for example, self-identity), and rehearses some reasons for this scepticism. The dialogue explores the pros and cons of the narrative approach to conservation and seeks to forge a compromise that acknowledges concerns about inflated claims for narrative while pursuing the merits of this particular application. (shrink)

The two greatest mathematicians of the early twentieth century, David Hilbert and Henri Poincaré transformed the mathematics of their time. Their personal interaction was infrequent, until Hilbert invited Poincaré to deliver the first Wolfskehl Lectures in Göttingen in the spring of 1909. A correspondence ensued, which fixed the content and timing of the lecture series. A close reading of the exchange throws light on what Hilbert wanted Poincaré to talk about, and on what Poincaré wanted to present to Hilbert and (...) his colleagues. To answer the latter question, reference is made to the published version of Poincaré’s six talks, with a focus on two of them, concerning the propagation of Hertzian waves, and the theory of relativity. (shrink)

A response to Saul Fisher’s critical note on Peter Lamarque and Nigel Walter’s ‘The Application of Narrative to the Conservation of Historic Buildings’.

Albert Einstein's bold assertion of the form-invariance of the equation of a spherical light wave with respect to inertial frames of reference became, in the space of six years, the preferred foundation of his theory of relativity. Early on, however, Einstein's universal light-sphere invariance was challenged on epistemological grounds by Henri Poincaré, who promoted an alternative demonstration of the foundations of relativity theory based on the notion of a light-ellipsoid. Drawing in part on archival sources, this paper shows how an (...) informal, international group of physicists, mathematicians, and engineers, including Einstein, Paul Langevin, Poincaré, Hermann Minkowski, Ebenezer Cunningham, Harry Bateman, Otto Berg, Max Planck, Max Laue, A. A. Robb, and Ludwig Silberstein, employed figures of light during the formative years of relativity theory in their discovery of the salient features of the relativistic worldview. (shrink)