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Game theory, also named transactions practice, is a relatively new field of economics, serious enough to have provided Nobel Prizes to its inventors. Unfortunately, it is often seen either as an obscure theoretical branch of abstract economics or as a way to formalize the rules of frivolous gambling and multi-player kids’ games.
Yet, transaction practice can bring a lot. It explains why the financial community is helpless towards a few critical risks, and why and when risk management in financial institutions can fail.