Dispassionate
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I'm assuming that they are well aware of game theory and the Nash equilibrium and that they do.
Any insights/comments appreciated.
Any insights/comments appreciated.
No. Thet may well be aware or not of all manner of things, but primarily they read market conditions and secondarily, attempt to create market conditions which suit their longer term aims.
They are up against each other (and institutions play their own little games with them all too) - and almost certainly not interested in 'getting' us little retail boys & girls.
Not only do they not need a cartel - they couldn't operate successfully themselves within one.
What would be the best entry principle, knowing that the big buyers and sellers move the market value?
TheBramble said:--------------------------------------------------------------------------------
No. Thet may well be aware or not of all manner of things, but primarily they read market conditions and secondarily, attempt to create market conditions which suit their longer term aims.
They are up against each other (and institutions play their own little games with them all too ) - and almost certainly not interested in 'getting' us little retail boys & girls.
Not only do they not need a cartel - they couldn't operate successfully themselves within one.
Its a good question no doubt. As long as they arent the only market maker, as bramble says they couldnt operate completely efficiently in a cartel. But, in certain conditions I would bet that they do have to operate in some sort of "implied cartel" (I know whats going on, you know whats going on, we all know each other knows whats going on, its best for us all if we dont try to beat each other at the moment).
As soon as the situation dissipates though, its back to you scratch my back Ill stab yours !
That would be my guess, and it is a complete guess because, Im not one, I dont know anyone who acts as one, and guinness![]()
Since the cartel agreements are never written down, there is always fear one is a bluffer and thus it seldomly works out. Only in case they are prosecuted, they are in a prisoners dilemma situation then, and they may act as a cartel.