Predatory trading and risk minimisation: how to (b)eat the competition

摘要

We present a model of predatory traders interacting with each other in thepresence of a central reserve (which dissipates their wealth through say,taxation), as well as inflation. This model is examined on a network for thepurposes of correlating complexity of interactions with systemic risk. Wesuggest the use of selective networking to enhance the survival rates ofarbitrarily chosen traders. Our conclusions show that networking with 'doomed'traders is the most risk-free scenario, and that if a trader is to network withpeers, it is far better to do so with those who have less intrinsic wealth thanhimself to ensure individual, and perhaps systemic stability.