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In this short note, we show investors one way to calculate ideal investment sizing by using two rules of thumb based on a simple outline of individual risk aversion. We illustrate these two heuristics, which are not widely appreciated, with thought experiments involving coin flips and ketchup &...
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Game theory is a branch of social sciences that formalizes decision-making in situations where two or more individuals … theory is a natural way to capture this understanding and we showed that Smith used, from the LBRL over the TMS to the WN …, what we called reasoning routines that map tightly into eductive and evolutive game theory. The present manuscript is a …
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