IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-22768-2_2.html
   My bibliography  Save this book chapter

When is Speculation a Positive Sum Game?

In: Bubbles in Credit and Currency

Author

Listed:
  • Brendan Brown

Abstract

Participants in any particular asset market do well to ask themselves (every so often, not continuously!) why they are participating. In the previous chapter we saw how sometimes it is entirely rational to decide in favour of exiting a particular market. A rational exit occurs in the case of hot or cold markets where the individual concerned is not mesmerized by the dominant scenario and yet does not view a sufficiently favourable risk-reward ratio from speculating on an ultimate temperature shift (back into the temperate zone). In warm markets an example of a rational exit is the selling out by the more conservative investors (reticent about accepting the full implications broadcast for the speculative displacement in the process of discovery) to the bold (not necessarily wise!) vanguard of investors (who already have jumped the gun in the discovery process). These particular illustrations highlight a general dilemma of whether to be there (in the given market-place) — as a player in the game — or not.

Suggested Citation

  • Brendan Brown, 2008. "When is Speculation a Positive Sum Game?," Palgrave Macmillan Books, in: Bubbles in Credit and Currency, chapter 2, pages 48-86, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-22768-2_2
    DOI: 10.1057/9780230227682_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-22768-2_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.