Physics math

A physicist Ole Peters has proposed a new economic theory which turns the study of economics on its head. Peters says all current theories are based on something called "ergodicity". It means that the average of all possible outcomes of a given situation informs how any one person might experience it. He maintains that what you can expect on average has little to do with what most people do. Instead of using the math of the economist, Peters uses his solution which is to borrow math commonly used in thermodynamics to model outcomes using the correct average. Here is an example of what ordinary math might lead one to believe. Assume you invest $100 and it goes up and down in value always going up 50% and down 40%. You might expect to win big over time but you would be wrong. 100 up 50% is 150 and 150 down 40% is 90. After four ups and downs you have $65. Now a computer was used mimicking what 10,000 participants would do with 100 ups and down and the results tend to look very different. The ups and downs occurred randomly but averaged out half up and half down as one would expect from flipping a coin. While the average payout was a profitable $16,000,one lucky person got $117 million which was 70% of the groups wealth and over half of the people ended up with less than one dollar. That sounds a lot more like real life than everyone coming up even.