A World of Chance
Betting on Religion, Games, Wall Street

This book shows how some societies created more chances for their members than others and, as a result, prospered.

Reuven Brenner (Author), Gabrielle A. Brenner (Author), Aaron Brown (Author)

9780521711579, Cambridge University Press

Paperback, published 4 August 2008

358 pages, 6 tables
22.9 x 15.2 x 2.5 cm, 0.54 kg

'A World of Chance undermines our usual view of 'economic man' and substitutes the angst-ridden, uncertain denizen of a world that offers no certainties and requires risk-taking as a matter of survival. … For providing a theoretical foundation for the counter-intuitive behavior of American taxpayers, the Brenners deserve the Nobel Prize in economics.' Asia Times

Although financial markets often try to distance themselves from gambling, the two factors have far more in common than usually thought. When, historically, there were no financial institutions such as banks, lotteries constituted the ways by which expensive items were disposed of, and governments raised money quickly. Gambling tables fulfilled roles that venture capital and banking do today. 'Gamblers' created clearinghouses and sustained liquidity. When those gamblers bet on price distributions in futures markets, they were redefined as 'speculators'. Today they are called 'hedge fund managers' or 'bankers'. Though the names have changed, the actions undertaken have essentially stayed the same. This book shows how discussion on 'chance', 'risk', 'gambling', 'insurance', and 'speculation' illuminates where societies stood, where we are today, and where we may be heading.

1. From religion to risk management - what do you do when facing uncertainty?
2. Anything wrong with gambling as a pastime?
3. Are you rich? Risk-taking, gambling, and the leapfrogging instinct
4. Betting on futures
5. Gambling - as banking: poker, junk bonds and central banks
6. 'Lottery is a taxation, and Heav'n be prais'd, it is easily rais'd'
7. Politics and prohibitions, or, what's a good tax anyway?
8. How gamblers and risk-takers correct the future
Appendix 1. Gambling and risk-taking: the leapfrogging instinct
Appendix 2. Human nature and the 'civilizing' process
Appendix 3. A statistical profile of gamblers.

Subject Areas: Gambling: theories & methods [WDP], Business & management [KJ], Finance [KFF], Economic forecasting [KCJ]