Louis
Bachelier (1870-1946)
The
French mathematician Louis Bachelier is attributed to have done
the first theoretical work on Brownian Motion in his Ph.D. thesis
entitled Théorie
de la Spéculation (translated
as The Theory of Speculation) in 1900. This work is often
overshadowed by the work of Albert Einstein done 5 years later
of which Einstein was apparently unaware. Despite
this, Bachelier's work is often considered to be more substantial
in directly linking stochastic (random) processes such
as Brownian motion to a mathematical framework.
He established that such stochastic processes are well
described by the Wiener distribution and thus formally tying
Brownian motion to the diffusion equation.
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