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Abstract: Just as war is sometimes fallaciously represented as a zero sum game - whenin fact war is a negative sum game - stock market trading, a positive sum gameover time, is often erroneously represented as a zero sum game. This is calledthe -zero sum fallacy- the erroneous belief that one trader in a stockmarket exchange can only improve their position provided some other trader-sposition deteriorates. However, a positive sum game in absolute terms can berecast as a zero sum game in relative terms. Similarly it appears that negativesum games in absolute terms have been recast as zero sum games in relativeterms: otherwise, why would zero sum games be used to represent situations ofwar? Such recasting may have heuristic or pedagogic interest but recasting mustbe clearly explicited or risks generating confusion.Keywords: Game theory, stock trading and agent based AI.



Autor: Eric Engle

Fuente: https://arxiv.org/



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