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Once a pattern like that has been noticed and (crucially) correctly analysed, it tends to disappear, as the affected actors modify their behaviour in response
by mseebach 9y ago
Once a pattern like that has been noticed and (crucially) correctly analysed, it tends to disappear, as the affected actors modify their behaviour in response to this analysis.
- Top19 9y agoThat is something I’ve thought about too. Kind of like passive investing / index funds. It works great, but if everyone is doing it, then it loses it’s original purpose and distorts market prices. I will say once patterns are discovered they tend to be forgotten as well, so modification can stop happening.
- gt_ 9y agoAlright, that is rational. So, why are there so many exceptions to this rule?For example, why is this limited to America? Is this because America has such a free market? And if that’s the case, where did this overwhelming inequality and monopoly dominance come from? I’m sorry, but this is just incredibly simplistic reasoning and i think deserves some testing and scrutiny. Maybe you’re right, but please explain.