MendelSchmiedekamp comments on Money pumping: the axiomatic approach - Less Wrong

12 Post author: Stuart_Armstrong 05 November 2009 11:23AM

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Comment author: ChrisHibbert 07 November 2009 08:57:53PM 0 points [-]

Agreed.

I work on prediction markets, so I see it all as bets, and am used to thinking that both participants in a purely financial trade can gain from it, even though many people on the outside of the deal see it as zero sum. Sometimes you increase your variance because you think it's worth increasing your expected return, other times you reduce your variation.