Well, since the 17th century's tulip bubble we know that they are not. So a well programmed game theory based program should account for irrational players too. But the criticism is valid when we think of negotiating with an aging dictator, whose willingness of self-preservation or rationality may not be the same as a normal political leader who cares about his future and family.
Since you bring up Tulips.. The classic by Charles Mackay "Extraordinary Popular Delusions and the Madness of Crowds" is a must read References: https://archive.org/details/in.ernet.dli.2015.58938/page/n7/mode/2up https://www.google.com/books/editio...dQOsC?hl=en&gbpv=1&pg=PA2&printsec=frontcover
I would say that trading and investing is all about game theory. You making a plan for trading with your idea's will interact with the plan of other people in the market. Aka game theory.
I think the Fed often uses Game Theory. The Large Picture strategy is to transfer as much of the USA taxpayers wealth into the hands of a very small group of Victors. The cannon fodder is the retail Investors. The generals are the Bank members of the Fed, Primary Dealers, Investment Banks. 9/11 was their pearl harbor
1) have SM account with followers 2) buy stonk x 3) announce on channel you bought stonk x 4) after rise stonk x sell stonk x 5) when stonk x falls blaim GS or whatever 6) rent lambo for a day and dance on it with a few bucks on SM account 7) go to 1)
CFPB was good. I did a complaint and within days 2 banks called. seemed to be in panic mode. I assume bank lobbyists got what they wanted in the end.
im not sure the bank lobbyists had to do anything. It frees up trump’s private equity firms to start screwing the regular guys.
That is the outline of most loss porn on r/WSB. I mean I was reading it yesterday and there people who were up 100s of thousands and lost it all trying to short TSLA PLTR & SPY even at the lows with 0DTE options. Those guys hate taking profits.