Shostack + Friends Blog Archive


White Sox futures market

For the last couple of weeks, peddlers have set up shop just outside Chicago’s Union Station to sell White Sox paraphernalia. Once the Sox were in the Series, I noticed an interesting phenomenon.
Hats were selling for $10.00 after game two of the series. After game three, they were down to $5.00. After game 4 (the final game, thereby halving the Windy City’s exposure to the terrorist threat), they were up to $20.00.
The jump to twenty bucks I understand, but what surprised me was the precipitous drop from $10.00 to $5.00 earlier in the week. Does this mean that the vendor expected a Sox loss, and the subsequent decline in the desirability of his merch? That’s a mighty dismal view, for a guy whose team was up two games to none at the time.

One comment on "White Sox futures market"

  • Iang says:

    You also have to factor in the demand and the use of capital. Most fans will buy early on, so demand decreases over time. Also, value of capital decreases as time goes on because there are a decreasing number of opportunities to use the hat.

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