A look at how you should price a bet
Part One – The bet Earlier this year, several PBers, including OGH, bet on there being a Labour lead by the end of the year. (They won, because of the opinion poll covered here. Well done!). More recently, Smarkets has established a market on the prospects of a Conservative lead by end of January (covered here). But this bet (‘the bet’) is perhaps the most interesting out there from a theoretical point of view. When it offers good value is…