Bankless 22 - The People’s Narrative | Ben Hunt
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Jul 20, 2020 
Ben Hunt, a former fund manager and the mind behind Epsilon Theory, dives deep into narratives and game theory in markets. He explains how the ‘nudging oligarchy’ shapes our economic realities, highlighting the chaotic nature of today’s world. Hunt outlines three promising paths for crypto, emphasizing its potential to disrupt traditional financial systems. The conversation also touches on how shared awareness and innovative financial tools can empower individuals, offering fresh insights for navigating the evolving landscape of finance.
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Epsilon in Investing
- Investment portfolio performance depends on alpha, beta, and epsilon.
- Epsilon represents factors outside traditional models, like strategic player behavior.
Playing the Player
- Epsilon captures the strategic behavior of market participants, or "playing the player".
- This goes beyond fundamentals and considers how others' actions influence markets.
Common Knowledge Game
- Predictable patterns exist in strategic interactions, especially in the "common knowledge game".
- This game, described by Keynes, explains how crowd behavior impacts markets.