tag:blogger.com,1999:blog-8040007778377298809.post5204793256200269316..comments2007-08-19T12:43:15.550-04:00Rick Bookstaberhttp://www.blogger.com/profile/01753622527319607465noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8040007778377298809.post-59164409039741245852007-08-19T12:43:00.000-04:002007-08-19T12:43:00.000-04:00I think that is correct. The models do not take into account the impact the trading based on those models will have, or how many others will be doing the same thing and how that will then affect the market. With the exception of trade execution, everyone still seems to operate on the assumptions that their own activities are atomistic -- i.e. too small to affect the market.Rick Bookstaberhttp://www.blogger.com/profile/01753622527319607465noreply@blogger.comtag:blogger.com,1999:blog-8040007778377298809.post-40519444558234781562007-08-16T11:16:00.000-04:002007-08-16T11:16:00.000-04:00It doesn't appear to me, as an outsider, that the decision theory employed reflects any serious understanding of game theoretic phenomena.<BR/><BR/>Am I just wrong about this?michaelhttp://www.blogger.com/profile/08709023254632080905noreply@blogger.com