Elasticity theory of structuring

Andrei Soklakov presents a product design theory that incorporates Bayesian information processing and risk aversion

elasticity

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In Soklakov (2015a), we reviewed the shortcomings of the precrisis approach to product design and advocated the need for a better, more quantitative, approach. We first constructed such an approach in Soklakov (2011) and provided further illustrations in Soklakov (2016).

So far, most of our examples have been centered around the important special case of the growth-optimising investor. This investor defines growth in terms of the compounded rate of return (logarithm