Quote:
Originally Posted by kyleb
1) Look at Pinnacle's line
2) Find a better one
3) profit!
Here is how I interpret this:
1. Assume that Pinnacle's market is efficient
2. Convert to a no-vig price
3. Find better than this price on some other market
If this is indeed a robust method for making money, why would anyone ever actually want place a bet on Pinnacle?
Placing a bet there says that you know better than them what the proper no-vig equilibrium is. I suppose it could also be correct to place a bet there if you are maximizing EG due to a bet you placed in a different market.
Are my assumptions wrong, or are there lots of people out there that are capable of consistently beating their prices?