An opinion piece by Chris Arnade on the asymmetry in pay (money for profits, flat for losses), which he describes "the engine behind many of Wall Street’s mistakes" That asymmetry "rewards short-term gains without regard to long-term consequences," Chris writes in a new guest blog at Scientific American. "The results? The over-reliance on excessive leverage, banks that are loaded with opaque financial products, and trading models that are flawed." [Scientific American Blog Network]

7 Responses to “Game theory and bad behavior on Wall Street”

  1. SedanChair says:

    That asymmetry “rewards short-term gains without regard to long-term consequences,” 

    Ooh, maybe this is the time that pointing out that theiving bankers run our system will effect change!

  2. peregrinus says:

    I’ve never understood why people are willing to give their money to someone who suffers no penalty for losing it.  Never.

  3. Elliott B. says:

    Wait, did you link source twice? o_O

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