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Ep. 269: Robert Aumann Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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What Is Game Theory Trying to Accomplish?

Game theory is an analysis of interactive situations in which people are striving to or entities, not necessarily people. Each one is rational, trying to promote his own goals and he's taking into account that the other players are also trying to promote their goals. In economics a person is rational if he promotes his own goals to the extent, to the best extent of his knowledge. And as far as he knows, he is promoting his own goals. That's rational. It's not logical thinking, it's not science, it'snot any of that stuff. So perhaps you could touch on some of these basic issues before we jump in. We'll get back to the question of what is game theory

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