Abstract
In many practical situations, simplified models, models that enable us to gauge the quality of different decisions reasonably well, lead to far-from-optimal situations when used in searching for an optimal decision. There is even an appropriate Russian saying: simplicity is worse than theft. In this paper, we provide a mathematical explanation of this phenomenon.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Chakrabarti, B.K., Chakraborti, A., Chatterjee, A.: Econophysics and Sociophysics: Trends and Perspectives. Wiley-VCH, Berlin (2006)
Chatterjee, A., Yarlagadda, S., Chakrabarti, B.K.: Econophysics of Wealth Distributions. Springer-Verlag Italia, Milan (2005)
Farmer, J.D., Lux, T.: Applications of statistical physics in economics and finance. A Special Issue of the Journal of Economic Dynamics and Control 32(1), 1–320 (2008)
Gabaix, X., Parameswaran, G., Vasiliki, P., Stanley, H.E.: Understanding the cubic and half-cubic laws of financial fluctuations. Physica A 324, 1–5 (2003)
Leontieff, W.: Input-Output Economics. Oxford University Press, New York (1986)
Mantegna, R.N., Stanley, H.E.: An Introduction to Econophysics: Correlations and Complexity in Finance. Cambridge University Press, Cambridge (1999)
McCauley, J.: Dynamics of Markets, Econophysics and Finance. Cambridge University Press, Cambridge (2004)
Rachev, S.T., Mittnik, S.: Stable Paretian Models in Finance. Wiley Publishers, New York (2000)
Roehner, B.: Patterns of Speculation - A Study in Observational Econophysics. Cambridge University Press, Cambridge (2002)
Romanovsky, J.V.: Lectures on Mathematical Economics. St. Petersburg University, Russia (1972)
Shmelev, N., Popov, V.: The Turning Point. Doubleday, New York (1989)
Stanley, H.E., Amaral, L.A.N., Gopikrishnan, P., Plerou, V.: Scale invariance and universality of economic fluctuations. Physica A 283, 31–41 (2000)
Stoyanov, S.V., Racheva-Iotova, B., Rachev, S.T., Fabozzi, F.J.: Stochastic models for risk estimation in volatile markets: a survey. Annals of Operations Research 176, 293–309 (2010)
Vasiliki, P., Stanley, H.E.: Stock return distributions: tests of scaling and universality from three distinct stock markets. Physical Review E: Statistical, Nonlinear, and Soft Matter Physics 77(3) (2008), Publ. 037101
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Ceberio, M., Kosheleva, O., Kreinovich, V. (2014). Simplicity Is Worse Than Theft: A Constraint-Based Explanation of a Seemingly Counter-Intuitive Russian Saying. In: Ceberio, M., Kreinovich, V. (eds) Constraint Programming and Decision Making. Studies in Computational Intelligence, vol 539. Springer, Cham. https://doi.org/10.1007/978-3-319-04280-0_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-04280-0_2
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-04279-4
Online ISBN: 978-3-319-04280-0
eBook Packages: EngineeringEngineering (R0)