Re:A High Frequency Trader's Apology, Pt 2
by rdlowrey on Thursday April 26, 2012 @02:08PM
(#3895321)
I agree, though as far as HFT is concerned (staying on topic), I'll reference this other comment below: http://news.ycombinator.com/item?id=3895308
Sometimes the assumption that people are rational breaks down, like with sticky prices caused by what psychologists would call "loss aversion". In that case economists make the changes they need to to their models to account for how people differ from the simplest model. This is basically how you get the entire field of Macroeconomics.