In this post, I attempt to apply a few of the theoretical concepts I’ve discussed in previous posts (on NonZeroSum.Games)to a field that we encounter often but remains a mystery to most of us - the stock market. If the stock market is a game, is it zero-sum? Who are the agents? What about rationality and higher-order beliefs? Exploring these questions below, I hope to unpack this topic through the lens of the human mind and common knowledge. But first ….
What are Zero Sum Games?
As the name suggests, a zero-sum game is one in which one player’s winnings are equaled by the other’s losses, resulting in no overall creation or destruction of wealth (Zero-Sum... (read 728 more words →)