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My understanding is that game theory isn't there yet, so you can't do a first principles market approach. But one should still try to make things work better a
by daniel-cussen 17y ago
My understanding is that game theory isn't there yet, so you can't do a first principles market approach. But one should still try to make things work better and more elegantly.
- _delirium 17y agoIt's also hard to really "design" markets in an overarching way; they tend to be nothing but formalizations of and patchwork fixes to various existing practices. The stock market, for example, is a formalization of the paper-stock-trades market with an attempt at improving transparency and reducing fraud; the commodities exchange market is similar for commodities, with the additional goal of providing a clearance mechanism to get counterparty risk out of the picture; etc.