3 ms·

> This decreases combined utility of you and your counter-party. The counterparty tends to have an edge. Roulettes have zeros, bookies get a cut, etc. I guess

by kgwgk 2y ago

> This decreases combined utility of you and your counter-party. The counterparty tends to have an edge. Roulettes have zeros, bookies get a cut, etc. I guess on a poker table everyone thinks that they have an edge but they can't all be right.

noitpmeder 2y ago
Also casinos typically take rakes in poker
- jack_pp 2y ago
  index funds also take a fee
- treme 2y ago
  Effect of rake makes it such that only about 5% of players show profit in the long run.
Frummy 2y ago
The edge you have from selling insurance is selling psychological safety, people pay to not feel negative. Maybe some gamblers can recognise moments they've been irritated where some rule requires insurance, "let me embrace the risk on my own dammit"
- dartos 2y ago
  The edge they have is providing more utility for you dollar, as OP said. That kind of edge is just having a good or service someone would pay for.