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22 - The People’s Narrative | Ben Hunt

Bankless

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Navigating Epsilon Theory in Investment Dynamics

This chapter explores Epsilon Theory and its relevance to understanding the complexities of investment behavior through the lens of game theory. It discusses the significance of 'epsilon' in capturing the unknown variables impacting market dynamics and highlights the role of narratives in shaping investor decisions. Utilizing metaphors like the three-body problem and societal thought experiments, the chapter illustrates how shared awareness and common knowledge can trigger significant shifts in market activity.

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