My Faults My Own

…willing to sacrifice something we don't have

for something we won't have, so somebody will someday.

IN WHICH Ross Rheingans-Yoo, a sometimes-poet and erstwhile student of Computer Science and Math, oc­cas­ion­al­ly writes on things of int­erest.

PredictIt Arbitrage

note: Long after I posted this, PredictIt changed their policies on margin requirements in "linked markets", a small step towards market efficiency. Nevertheless, they left in place their 5% tax on withdrawals and 10% tax on gross profits, so the central argument that inefficiencies can stop even the most commonsense arbitrages from correcting out-of-line markets, remains largely true.


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Political betting site PredictIt offers everyone the ability to (legally) bet (real money) on the outcome of political events. For example:

The market in "Who will win the 2016 Republican presidential nomination?", displaying thirteen leading candidates.

You can pay 39¢ for a Yes share in BUSH.RNOM16, which will be worth $1 if Jeb Bush wins the Republican nomination, and $0 if he does not. Similarly, you can pay 63¢ for a No share in BUSH.RNOM16, which will be worth $0 if he wins and $1 otherwise. (Another way to think about this is that you can sell a Yes share for 37¢ or buy one for 39¢. These numbers are different for pretty much the same reason that you can't

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