Brain-Score 95/100
Ergodicity TV
· 19:12
Random multiplicative dynamics -- Ole Peters
- A random process breaks ergodicity when its ensemble expectation value across parallel systems diverges from its long-time trajectory rate.
- In a fair coin toss gaining 50% on heads and losing 40% on tails, the ensemble average grows 5% per round while single trajectories decay.
- Because individuals cannot average across parallel clones, long-run wealth follows the time average, converging continuously to GBM.
Ergodicity BreakingEnsemble vs Time AverageMultiplicative Coin-Toss GameGeometric Brownian Motion (GBM)Stochastic Differential Equations