Abstract
A simple, hypothetical, probabilistic model is presented here to study how market manipulation done by an individual, towards his favor, also impact the success rates of others and vice versa. The mathematical modeling is intentionally developed into a form similar to that resulting from a game theory exercise, because the actions of one individual do not take place in isolation from the actions of others. The effect of not being content to stay at the level of one’s peers is surveyed critically and the positive/negative bearings of this ideology are shown. Other results presented include how being selfish and following personal greed motives may possibly be the best choice available for an individual; how working in a team against a particular opponent could turn out to be not as individually advantageous as taking the risk of working alone.
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© 2012 Springer-Verlag Berlin Heidelberg
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Singh, B. (2012). A Mathematical Model for Market Manipulations. In: Sornette, D., Ivliev, S., Woodard, H. (eds) Market Risk and Financial Markets Modeling. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-27931-7_19
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DOI: https://doi.org/10.1007/978-3-642-27931-7_19
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