Aadisht writes in:
BTW I forwarded your cricket and hedging post to R who is putting jobhunt these days. Got this mail:
Thanks folks.. I thought I must mention that when I had my interview with N, it went something like this:
Me: I like markets a lot
N: Do you find anything bad about markets?
The discussion then turned to betting markets which I defended on standard libertarian grounds. He then asked me to explain the crucial difference between betting markets and the stock market. I told him that the difference was that in betting markets, incentives were not aligned, i.e. unlike stock markets, in cricket players did not have an incentive to perform better in order to increase the price on their team. He looked happy with the answer (because he was clearly anti-legalization of betting markets. )
Then he asked – do I have a good knowledge of hedging? I said yes. So Sony lost a lot of money because India was out of the cup. What could it do to mitigate the risk? I had my answer ready of course… It should have betted against India..
I didn’t know that my blog is this useful! Hope R gets that job. I should then be able to bully him for a treat.??