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Gambling the World Away: Myopic Investors

By Bernhard Meister
Myopic investors are locally rational decision-makers but globally irrational. Their suboptimal portfolios lag the market. As a consequence, other market participants are provided with profit opportunities. Not subterfuge but constrained optimisation leads to disparities. Four overlapping examples are given. The first case centres on the difference between local and global... Show more
February 27, 2023
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Gambling the World Away: Myopic Investors
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