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  • Game Theory Exposes PPIP Fraud

    04/09/2009 11:03:51 AM PDT · by fiscon1 · 1 replies · 432+ views
    REal Clear Markets ^ | 04/09/2009 | James Keller
    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.