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Tuesday, November 10, 2009

Poker and the economy

by Monkeedude1212 (1560403) Alter Relationship on 3:53 Tuesday 10 November 2009 (#30039306)

Meaning if you can generalize the solution to poker, you have the ability to discover the Nash equilibrium of the economy

The general solution to poker is to end the game with everyone elses money to make yourself richer. Some people have already applied this strategy to the economy.

by Chemisor (97276) Alter Relationship on 4:17 Tuesday 10 November 2009 (#30039574) Journal

Once you factor debt and fractional reserves into the picture, the game changes quite a bit. The current crisis is that the players bet WAY more than they had, and they are all afraid to call, since they secretly know that EVERYBODY is bluffing. So the game (and the stock market) keeps going up as the players trying to outbluff each other with "I'll see your billion and raise you three more". And it will keep going up until somebody has to actually put something of value in the pot.

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