description: In Gaming the Market, economist Ronald B. Shelton provides a model that enables traders to predict profitability and, as a result, make effective buy and sell decisions. Stated simply, game theory is the study of conflict based on a formal approach to decision making that views decisions as choices made in a game. Whether playing individually or in a group, each player in a conflict has more than one course of action available to him, and the outcome of the "game" depends on the interaction of the strategies pursued by each. Shelton offers real-world examples that reveal how the principles of game theory drive financial markets - and how these same principles can be used to develop winning investment strategies. Through Shelton's organized and precise explanations - he uses familiar games such as chess and checkers to illustrate his points - readers gain a solid understanding of the key principles of game theory before applying them to actual financial market situations. Gaming the Market examines the interaction between price fluctuations and risk acceptance levels and gradually constructs a game theory model which proves that there are probability-based formulas for determining the profitability of any given trade.
title: Gaming the market: Applying Game Theory to create winning trading strategies
titlecomplete: Gaming the market: Applying Game Theory to create winning trading strategies
ratings_count: 6
publisher: Wiley