Who’s next? Paddy Power, the Irish gambling site, has decided to tap
the wisdom of crowds and set odds on who the next C.E.O. casualty will
be.At the top of the site’s list, odds-wise, is Bear Stearns‘
James E. Cayne. Paddy Power is quoting 13-8 odds on a bet that he will
be ousted by June 30, 2008. The odds, better than 2-1, represent a
relatively high expectation that he will soon be out of a job. That
probably reflects some serious setbacks at Bear Stearns under his
watch, including the collapse of two internal hedge funds this summer.
Here is the story, thanks to John de Palma for the pointer. And here is Robin Hanson on CEO Futures, the idea originates from Robin.















A step closer, but alas still a long way off from markets in the stock conditional on keeping (or not) the CEO.
How is 13-8 better than 2-1? 2-1 translates to 16-8, making 13-8 less than 2-1. Is this new math?
I absolutely love gambling but the odds are always stacked against me.
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