When people trade stocks, they don’t necessarily learn from experience
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Learning from past mistakes may never make you the best decision maker. This finding, derived from an analysis of mathematical games that simulate large-scale economies, suggests that some of the common assumptions built into existing economic theory may need to be reconsidered.
In such theories, people are typically represented as rational agents who learn from past experience to optimize performance and eventually reach a steady state where they know how to maximize returns. This assumption…
Source: www.newscientist.com
