Thread: Staking dilemma
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Old 11-20-2007, 01:29 PM
Todd Terry Todd Terry is offline
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Join Date: Apr 2006
Location: The Bellagio
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Default Re: Staking dilemma

There is no fair or correct solution to this problem. The player is worth a certain amount to a backer, in NPV terms, over the length of the backing period, call it X (obviously X is subject to a great amount of uncertainty, but ignore that for a second). B and C should be willing to pay any amount up to 1/3 X for the right to receive 1/3 of the player's profits over the backing period. Obviously, if the player were JC Tran live or Imper1um online, B and C should be willing to pay a lot more than they would for someone else. Essentially, A is giving up something of very uncertain value -- to wit, 2/3 of the profits of the player -- and how the parties value that something is dependent on the parties.
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