March 10, 2010
Mathematician bursts economic bubbles
Dr. Andrew Odlyzko, professor of mathematics at the University of Minnesota, will give a free and public lecture on Thursday, March 25 at 7:30 p.m. in room 102 of the Science Building (726 35th St.). The lecture, titled "Technology Manias: From Railroads to the Internet and Beyond," is sponsored by the Augustana chapter of the prestigious national honor society, Phi Beta Kappa.
Odlyzko will address economic bubbles-irrational booming prices within an industry followed by a crash or "bubble burst"-that have occurred throughout history. In particular, he will compare the recent Internet bubble, which led to the laying of billions of dollars of now unused fiber-optic cables, with the British Railway Mania of the 1840s, which involved similar premature investments in railway lines.
He claims the British Railway Mania may have been the largest technology mania in history. Similar to the Internet bubble, the railway mania was possible because investors ignored warning signs of trouble in order to get rich quick. Odlyzko says the railway mania is often overlooked in economic history and could offer today's investors some perspective on how to avoid similar mistakes. Although economic bubbles are impossible to identify until they have already burst, Odylzko's lecture will include his predictions about future bubbles based on past technology manias.
Odlyzko received his Ph.D. from the Massachusetts Institute of Technology and performed research and research management at Bell Labs and AT&T prior to becoming a professor at Minnesota. In addition to economic history, his interests include pure mathematics, computer science and communications.
Since 1956, the Phi Beta Kappa Visiting Scholars program has sent top scholars to the nation's most prestigious colleges and universities. The visiting scholars spend two days meeting with students and faculty, and give a major address to the community. Phi Beta Kappa, which was established in 1776, includes only 10% of the nation's institutions. The Augustana chapter was established in 1950.
Keri Rursch
Director of Public Relations
(309) 794-7721
kerirursch@augustana.edu
