"The mathematical expectation of the speculator is zero": Rare First Edition of Bacheliers First Book Calcul des Probabilités
Calcul des Probabilites.
Item Number: 4462
Paris: Gauthier-Villars, 1912.
First edition of Bachelier’s first book. Quarto, bound in contemporary half cloth with the original wrappers and spine strip pasted to the boards. Bachelier considered this work as the first to surpass Laplace’s great treatise Théorie Analytique des Probabilités. Housed in a custom half morocco clamshell box. Rare.
Louis Bachelier was a French mathematician credited with being the first person to model the stochastic process now called Brownian motion, which was part of his PhD thesis The Theory of Speculation. His thesis, which discussed the use of Brownian motion to evaluate stock options, is historically the first paper to use advanced mathematics in the study of finance. Thus, Bachelier is considered a pioneer in the study of financial mathematics and stochastic processes. His systematic use of the concept of continuity in probabilistic modeling was, he felt, his major contribution to science. He defined Brownian motion predating Einstein by five years and discussed the use of Brownian motion to evaluate stock options. Historically, he was the first person to use advanced mathematics in the study of finance and is considered a pioneer in the study of financial mathematics.