Interest in the stock market has never seen such diversity as it has in recent years. Technologies have extended interest to a range of demographics that previously did not give much thought into investing and the public markets. Instead of requiring large account balances, persistent fees and unintuitive interfaces, digital first brokerages like Robinhood have proliferated access to the markets in a manner never before seen. Modern “robo-advisors”, like Wealthfront, provide easy access to financial advice to those who would previously not seek it, and micro-investing apps like Acorns make investing a passive, but profitable experience. While these solutions work great for those just getting started in the public markets, how do investment firms with billions of dollars on the line find appropriate investments?
Game Theory is a field shared by math and economics that aims to describe strategies and outcomes of games. A game is simply a set of possible decisions and their outcomes. While Game Theory is immediately applicable to certain board games (Tic-Tac-Toe and Chess among others), its usefulness goes far beyond into areas such as public policy and business strategy.