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Modern Investment Through Game Theory: John Nash’s Strategic Thinking and Applications

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**Game Theory** is a multidisciplinary field combining mathematics and economics to study optimal strategies in interactive decision-making scenarios. Advanced by **John Nash**, his concept of "Nash Equilibrium" presents a balance between cooperation and competition. Today, game theory is a crucial decision-making tool in financial markets. --- ## Core Concepts of Game Theory ### 1. **Nash Equilibrium** A Nash Equilibrium occurs when each participant chooses their optimal strategy, considering others' strategies, leaving no incentive to deviate. - **Modern Application**: Used in financial markets where investors anticipate each other's actions to build optimal portfolios. --- ### 2. **Prisoner’s Dilemma** This model illustrates how individual optimal choices can lead to suboptimal collective outcomes, highlighting the tension between cooperation and betrayal. - **Modern Application**: The **LIBOR scandal**, where banks manipulated interest rates, reflects...

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