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Yes, they transfer money from poorly informed people to well-informed people. That's the point. That's how they reward well-informed people for the service of m
by tlb 10mo ago
Yes, they transfer money from poorly informed people to well-informed people. That's the point. That's how they reward well-informed people for the service of making good predictions so everyone can be slightly better informed.
The fact that outcomes are lopsided are evidence that it's not gambling. In pure gambling, everyone gets the same expectation of gains. In a test of any particular skill, you expect a Pareto distribution of outcomes.
- JohnFen 10mo ago> In pure gambling, everyone gets the same expectation of gains. I think this is an overly narrow definition of gambling that excludes too much. Playing poker for money, betting on horses or dogs, and the like are all affected by skill and knowledge but are still gambling. If the gambling produces truly randomized winners, then what you have is a specific kind of gambling: a lottery.