The hottest Equations Substack posts right now

Every business can be distilled into a simple equation to understand its core aspects.
Defining a business equation aligns teams, focuses efforts, and identifies leverage points for impact.
Different business models like B2B SaaS, B2C, marketplaces, and DTC/e-commerce have specific equation examples to consider.

Maxwell's equations describe how electric and magnetic fields interact. They show the principles of electromagnetism in a clear way.
Heaviside simplified Maxwell's original equations, reducing them from twenty to four. This makes them easier to understand and use today.
The concepts of electric displacement and charge continuity are central to these equations. They help us understand how electricity flows and behaves in various situations.

The post discusses a visual appreciation of the Black-Scholes Delta equation.
It explains how the call option price must equal the profit and loss of the strategy for no arbitrage.
The analysis visually breaks down the delta calculation, emphasizing the balance between call price and weighted strike.

No anticipation means the baseline period is equal to Y(0) not Y(1)
Difference-in-differences coefficient equals ATT in the post period for the treatment group plus parallel trends bias minus ATT in the incorrectly specified baseline period
Difference-in-differences always requires three assumptions to point identify the ATT: SUTVA, Parallel trends, and No Anticipation

In complex situations, sometimes relying on simpler, traditional methods like Newtonian physics can still be effective and get the job done.
Striving for extreme accuracy or perfection, like using Einstein's equations instead of Newton's, may not always be necessary or practical, especially when the outcome is the priority.
It's important to balance between optimizing for the output and focusing on achieving the desired outcome, rather than getting lost in unnecessary details or precision.

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