133
you are viewing a single comment's thread
view the rest of the comments
[-] FuckyWucky@hexbear.net 26 points 2 days ago* (last edited 2 days ago)

We now examine who gains and who loses from AI collusion, and how this depends on the role of information-insensitive investors, captured by ξ, across three distinct trading environments. In case (i), with high ξ and low σu, the AI collusive equilibrium is driven by price-trigger strategies. Here, informed AI speculators primarily trade against information-insensitive investors, who absorb most of their order flow. In the simulation with ξ = 500 and σu = 10−1, each informed AI speculator earns an average profit of approximately 54, totaling a loss of about 108 for information-insensitive investors. Noise traders and market makers earn near-zero profits

of course, trading is zero sum so their collusion profits come from "information-insensitive investors".

this post was submitted on 02 Aug 2025
133 points (100.0% liked)

technology

23894 readers
143 users here now

On the road to fully automated luxury gay space communism.

Spreading Linux propaganda since 2020

Rules:

founded 5 years ago
MODERATORS