Pricing Risk & Time in Markets¶
Primes about how markets and agents weigh uncertainty and the future: the efficient incorporation of information into prices, the risk-return tradeoff demanding compensation for risk, time preference discounting delayed outcomes, and stationarity of a process's statistical properties.
4 primes in this family — primes that sit near one another in abstraction space (k-means over structural-signature embeddings). Each is shown with its structural–framed character and how distinctive (sparsely-neighbored) it is.
- Efficient Market Hypothesis (EMH) — mixed-framed · distinctive
- Risk–Return Tradeoff — mixed-framed · crowded
- Stationarity — structural · mid
- Time Preference (Discounting Future) — mixed-structural · crowded