This is arbitrage, plain and simple. Almost all of the literature about arbitrage can be applied here. Making use of arbitrage opportunities makes them go away. I think LW frequently tries to reinvent the wheel.
My next post is going to be on arbitrage, in fact :-)
However, the results here are still useful, as they illustrate exactly what types of money pumps/arbitrages can occur from precisely which violations of the axioms.
This is arbitrage, plain and simple. Almost all of the literature about arbitrage can be applied here. Making use of arbitrage opportunities makes them go away. I think LW frequently tries to reinvent the wheel.
My next post is going to be on arbitrage, in fact :-)
However, the results here are still useful, as they illustrate exactly what types of money pumps/arbitrages can occur from precisely which violations of the axioms.
Please elaborate on the similarity—it is not immediately obvious upon looking up the definition of “arbitrage”.
(That LW frequently attempts to reinvent wheels is perfectly plausible, of course.)
And it is even still plausible if you note that this particular post doesn’t seem intended to be original research.
Er, it is original research. I might be reiterating known results, but if so, I’m unaware of them.
Stuart, proud re-inventor of the wheel since… the invention of the wheel.