Stocks & Commodities V. 35:04 (40–42): Game Theory by John Devcic

Stocks & Commodities V. 35:04 (40–42): Game Theory by John Devcic
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Game Theory by John Devcic

When you think of trading, the farthest thing from your mind is to compare it to playing a game. But studies have shown that the behavior of players in a game is not unlike the behavior of participants in the most complex game setting of all—the markets. We can take a cue from these studies.

There are two main branches of game theory—cooperative and noncooperative. Noncooperative game theory deals largely with how individuals interact with one another while trying to achieve their own goals. In this article I will focus on non-cooperative games. Game theory has been successfully used in biology, engineering, political science, and economics ...

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