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This is not a single-round game. The financial markets represent effectively an infinite game (in game theory jargon), where you assume that the operation isn'
by veyron 14y ago
This is not a single-round game. The financial markets represent effectively an infinite game (in game theory jargon), where you assume that the operation isn't closing today. Therefore, you have to consider both the short-term effects and the long-term effects. Short-term this is good for FB but long-term this is terrible (have to give more equity to attract people, you can't borrow as much against your shares, etc.)