Betting Best of Series is a new expository paper describing the mathematics involved in betting on something like the United States’ Major League Baseball World Series. It isn’t so much about baseball as about demonstrating some of the really great ideas from mathematical finance in a simplified setting. This sort analysis is the “secret sauce” in a lot of financial models and I trying to share the thrilling feeling of working with these techniques in an elementary essay (with diagrams). Continue reading
author: John Mount, 5-13-2008
Anand Rajaraman recently wrote a very thought-provoking entry on his Datawocky blog. He asks “Is Search Advertising a Giffen Good?” As he explains a Giffen Good is a sort of economic doomsday machine that some segment of consumers are forced to buy more of an inferior good as the price of the inferior good goes up. His article is well written are really invites one to think about the issue. Anand’s question made me thing about a number of issues (which I will outline here) and I will leave off with a question of my own.