Well more interesting stuff. My Googling yielding woefully incomplete references for your keywords. So "a long time" means what here? Some pointers would be useful here. I'm interested, help me out here.
I know there was a book giving long reworking of Black-Scholes for Levi-Stable distributions in the early 2000's.
Of course, while you described the sophisticated approach, from Black-Scholes to the Gaussian "coupela" to the OP, the unsophisticated approach has a lot of traction still.
If we're ranging around all our interests in the market, I'd offer what I might hope would be the Minsky comment; "the fault, dear Brutus, lies not with our models but in our selves". Gaussian models reappear because they have "predictiveness". The problematic sides of the more sophisticated models are tolerated for the same reason. Greed tempts us always to irrationality jump from what Keynes called uncertainty to mere probability.
Btw, what do you think of Doug Noland of prudentbear.com?
I know there was a book giving long reworking of Black-Scholes for Levi-Stable distributions in the early 2000's.
Of course, while you described the sophisticated approach, from Black-Scholes to the Gaussian "coupela" to the OP, the unsophisticated approach has a lot of traction still.
If we're ranging around all our interests in the market, I'd offer what I might hope would be the Minsky comment; "the fault, dear Brutus, lies not with our models but in our selves". Gaussian models reappear because they have "predictiveness". The problematic sides of the more sophisticated models are tolerated for the same reason. Greed tempts us always to irrationality jump from what Keynes called uncertainty to mere probability.
Btw, what do you think of Doug Noland of prudentbear.com?