Venture Capital trends mimic Nash equilibrium

Game theory studies rational agents’ interactions in various environmental settings. Many business problems can be formulated in a game theory fashion, but in order to be able to study them, researches have to narrow the real world complexity by 1) limiting the freedom of agents’ actions and 2) omitting many long-term and second-order effects originating from the environment. Due to the simplification often models obtained are hardly applicable to real life business problems. Otherwise we would have already lived in the world of highly efficient markets where all decisions are…