The typical marginal participant is sophisticated. The opportunity marginal participant is desperate.
This resolves the paradox: if the marginal participant is so sophisticated, how does anyone profit? The answer is that the identity of the marginal participant changes. In equilibrium, you face the algorithms and the PhD quants. But equilibrium breaks, regularly, and when it does, the marginal participant becomes someone whose constraints create predictable, exploitable behavior.
发布于 上海
