Let’s say that you want to make some money at the horse tracks. The guy behind the booth gives you the following choice:
Most people, even if they don’t know much about horse betting, will rightfully think The Option is the way to go. No matter how much information you might have about each of the horses and riders before the race, the information you gather during the race is much more valuable. A top-ranked horse might break a leg, or its rider might trip up on the start. Even if you pick a favorite before the race begins, once it gets going and you see him lagging behind, the economic reality put in front of you will override your speculative capacities.