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Game Theory Exposes PPIP Fraud
REal Clear Markets ^ | 04/09/2009 | James Keller

Posted on 04/09/2009 11:03:51 AM PDT by fiscon1

Game theory tells us that a risk neutral gambler would pay $50 dollars for a coin flip that paid $0 for Heads and $100 for Tails. Game theorists would call $50 the value of the bet.

Suppose someone is willing to fund your gambling problem, and lend you $80 at zero interest. Better still, if you lose the bet you don’t have to pay him back. Under that scenario, the same gambler would pay $90 for the bet, giving him an even chance of winning or losing $10.

(Excerpt) Read more at realclearmarkets.com ...


TOPICS: Government
KEYWORDS: economy; secretarygeithner; talf

1 posted on 04/09/2009 11:03:52 AM PDT by fiscon1
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To: fiscon1

bfltr


2 posted on 04/09/2009 11:07:31 AM PDT by mnehring
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