As a businesses grow they often try to find economies of scale in their processes. In this case we are defining a process as the steps needed to transform some set of inputs into a product, or output. As volumes grow there is an opportunity to improve your efficiency by splitting tasks between different groups […]
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Optimal Kelly for Stocks
You often see people post about the kelly criterion and how to use it to maximize your gains over time when investing. When they post these articles though they often cut and paste an equation for best bet size. The equation comes from the original paper by Kelly but what they don’t realize is that […]
Democracy and Freedom
In 2019 a young man reported to his local polling place and cast his vote for his representative for the national legislature. It would appear to the outsider that he is clearly participating in the democratic process and surely he must appreciate the freedom he enjoys to control his government. However, in this case, he […]
An Introduction to Game Theory
“And then we have the economists who believe in game theory; arguing that we should disregard the health of our parents and grandparents!” It was about six months into the covid-19 pandemic. I was bored and made the mistake of logging onto FaceMelt. Despite my best efforts I got a bit irritated although I wasn’t […]