One of the first instances of the dumb agent theory in action was with the Policy Analysis Market (PAM); a futures exchange developed by DARPA.
[1] While this project was quickly abandoned by the Pentagon,[2] its idea is now implemented in futures exchanges and prediction markets such as Intrade, Newsfutures and Predictify.
This, in turn, results in other investors worrying about these picks and becoming influenced by them, which ultimately drives the markets (irrationally) up or down.
[3] While this is technically impossible in a futures exchange (because what other people are deciding dictates the price of the security), it can be done in a Prediction Market.
USS Scorpion (SSN-589) was a nuclear submarine of the United States Navy lost at sea on June 5, 1968.