To lessen transaction costs. Sending money to strangers over the internet is expensive, especially in terms of time. We’re avoiding that cost most of the time I win the bet.
Perhaps I could have negotiated to capture some of the saved value, but (1) I’m nice, (2) I’m less well known than shminux and so come with a greater risk of default, (3) this method saves me time too.
I don’t like variability in my income, but +-$100 is small enough that my utility function is pretty much linear.
To lessen transaction costs. Sending money to strangers over the internet is expensive, especially in terms of time. We’re avoiding that cost most of the time I win the bet.
Perhaps I could have negotiated to capture some of the saved value, but (1) I’m nice, (2) I’m less well known than shminux and so come with a greater risk of default, (3) this method saves me time too.
I don’t like variability in my income, but +-$100 is small enough that my utility function is pretty much linear.