At last scientists have done what once seemed impossible: Created a computer program that cannot be beaten at checkers. According to the Associated Press, researchers at the University of Alberta have developed Chinook, a program that is literally perfect at checkers: Playing against a human who does not make a single mistake, the game would end in a draw.

This week, the researchers will be testing Polaris, their poker-playing computer against two poker professionals for a $50 thousand purse. While this might seem inane, researchers believe it could lead to developments with far greater utility.

Historically, much of the innovation in financial markets and quantitative finance has been based on game theory, and ideas that were originally conceived and applied in relation to games like checkers.

The development of a perfect checkers-player is a pretty big leap, and could signal big changes coming in the world of trading.

Today's perfect checkers player, tomorrow's perfect trader? originally appeared on BloggingStocks on Sun, 22 Jul 2007 14:10:00 EST. Please see our terms for use of feeds.