Modesty Backward induction is a process of reasoning in which one starts from the end of a problem or situation, and then works backwards to the beginning. It is often used in game theory to analyze situations in which players have perfect information (meaning they know all relevant information about the situation, including what other players … Read more
An alternative investment is an investment in an asset that does not fall into one of the conventional asset classes such as stocks, bonds, or cash. Alternative investments include assets such as hedge funds, private equity, and venture capital. Alternative investments are often thought of as being more risky than traditional investments. This is because … Read more
A market distortion is an economic term that refers to a situation in which the free market is not allowed to operate properly. This can be caused by a variety of factors, including government intervention, monopolies, and externalities. Market distortions can lead to inefficiency and unfairness in the economy, and can often be addressed through … Read more
