Showing posts with label equilibrium. Show all posts
Showing posts with label equilibrium. Show all posts

May 6, 2011

Nash Equilibrium

A number of open ended funds are offering their unit holders a very nice opportunity to make good usage of game theory and figure out what to do next.

Some funds (see related article in the Immobilien Zeitung -in German- http://aox.ag/lvAZK1 ), are asking their current unit holders, what would be their behavior if the funds were to reopen for redemption. The underlying idea, is that the more unit holders opt for redemption, the more likely is the fund to liquidate.