The beneficial role of random strategies in social and financial systems

TL;DR

This paper explores how random strategies can positively impact social and financial systems through mathematical models, highlighting their benefits in organizational efficiency and market forecasting.

Contribution

It introduces a novel application of random strategies to financial trading and analyzes their effectiveness in market predictions.

Findings

Random strategies improve organizational efficiency.

Randomness enhances market forecast accuracy.

Empirical evidence supports benefits of randomness in social systems.

Abstract

In this paper we focus on the beneficial role of random strategies in social sciences by means of simple mathematical and computational models. We briefly review recent results obtained by two of us in previous contributions for the case of the Peter principle and the efficiency of a Parliament. Then, we develop a new application of random strategies to the case of financial trading and discuss in detail our findings about forecasts of markets dynamics.