My friend Brad Humphreys is
scratching his head over people who would pay more than $.50 for a contract that pays you $1 if the coin toss at the Super Bowl comes up heads. But when I looked at this bet on an
offshore book rather than on a
TradeSports exchange, I had to pay $1.15 to win $1, implying $.5209 for the cost of the bet offshore. So I'll add one possibility to the list of explanations Brad has: It's cheaper to pay for a coin toss on Tradesports than on Sportsbook.
BTW, for those interested, I had no money riding on last night's game except for $3 on a board among friends. None of my numbers came up. I cannot bet for or against my own team; I'm enough of a nervous wreck as it is.
Labels: economics, sports
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Posted
by King : 4:44 PM
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