THE THEORY OF SPECULATION. L. BACHELIER. Translated by D. May from. Annales scientifiques de l’ ´Ecole Normale Supérieure, Sér., ( ), p. Bachelier, L.. “Théorie de la spéculation.” Annales scientifiques de l’École Normale Supérieure 17 (): Bachelier On the centenary of Théorie de la Spéculation. finance: on this day French postgraduate student Louis Bachelier successfully de-.

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Thus, Bachelier is considered as the forefather of mathematical finance and a pioneer in the study of stochastic processes.

Théorie de la spéculation

Bachelier was born in Le Havre. His father was a wine merchant and amateur scientistand the vice-consul of Venezuela at Le Havre.

His mother was the daughter of an important banker who was also specuation writer of poetry books. During this time Bachelier gained a practical acquaintance with the financial markets. His studies were further delayed by military service. Bachelier arrived in Paris in to study at the Sorbonnewhere his grades were less than ideal.


Defended on March 29, at the University of Paris, [2] Bachelier’s thesis was not well received because it attempted to apply mathematics to an unfamiliar area for mathematicians.


Jean-Michel Courtault baxhelier al. For several years following the successful defense of his thesis, Bachelier further developed the theory of diffusion processesand was published in prestigious journals.

In he became a “free professor” at the Sorbonne.

Louis Bachelier

With the support of the Council of the University of ParisBachelier was given a permanent professorship at the Sorbonne, but World War I intervened and Bachelier thsorie drafted into the French army as a private. His army service ended on December 31, Besides the setback that the war had caused him, Bachelier was blackballed in when he attempted to receive a permanent position at Dijon.

Bachelier arguments used in his thesis also predate Eugene Fama ‘s Efficient-market hypothesiswhich is very closely related, as the idea of random walk is suited to predict the random future in a stock market where everyone has all theoire available information.


His work in finance is recognized as one of the theorei for the Black—Scholes model. From Wikipedia, the free encyclopedia. For the artist, see Jean-Jacques Bachelier. Le HavreFrance.

The Physics of Wall Street: A Brief History of Predicting the Unpredictable. Retrieved from ” https: Infobox person using alma mater Articles with hCards CS1 maint: Views Read Edit View history.

Théorie de la spéculation

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Louis Bachelier, aged Pioneer in mathematical finance. It is regrettable that M.

Bachelier did not develop this part of his thesis further.