Math behind Dope Wars drug trading for profit
jmtame.posterous.com
jmtame.posterous.com
I was thinking about this a few months ago. You could adapt the game to Color Wars--it'd be just as fun with the added bonus of way cooler graphics. Imagine the context is a world devoid of bright colors, and each drug is instead a color. It could look something like the food fight in Hook.
Please no one believe this post, it uses dubious statistics.
If you want to learn more about how to hedge bets, read about things like moment theory or the Kelly criterion.
Also, taking a measure like variance would be much more meaningful than just the spread of the payoff.
Isn't that why they have to subsidize it with pirate videos - at least thats what the ad at the cinema said,