The Statics and Dynamics of the Mutual Fund Industry

This talk is an overview of my son's work as a graduate fellow at the Santa Fe Institute on different aspects of the statics and dynamics of the mutual fund industry. They began with the question of how much control is concentrated in the hands of the largest mutual funds. Then they study the distribution empirically and show that it indicates less concentration than, for example, personal income. Argueing that the dominant economic factor that determines the size distribution is market efficiency and as a result the mutual fund industry can be described using a random entry, exit and growth process.

http://www.santafe.edu/research/videos/play/?id=71d587e1-fa5b-407a-860c-b3b5c111146d