Michael Covel interviews Didier Sornette

Didier Sornette is the Professor on the Chair of Entrepreneurial Risk at the Swiss Federal Institute of Technology, Zurich. He is also a professor of the Swiss Finance Institute, associated with both the department of Physics and the department of Earth Sciences at ETH Zurich, and an Adjunct Professor of Geophysics at IGPP and ESS at UCLA. He has worked on the King effect, a theory used to predict economic bubbles. Didier also set up the Financial Crisis Observatory in October of 2008.

Didier does not believe in black swans because they relate to ‘surprise events.’ He says that crisis are actually not surprise events at all. They can be expected and human related. Instead, Didier believes in a notion he calls “Dragon Kings.” His theory is called “Dragon Kings” because a King is a special person in a country (outlier in a distribution), and a dragon is one of unique origin.






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