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Feb 25

Emotional Hedging

British, Personal, Sport with tags: , Add comments

Arsenal Fans

While in a pub in London I was listening to someone talk about an emotional hedge. This happens fairly often I believe. The fellow was a die hard Arsenal supporter. Your gut would be, if you were a betting kind of chap, to bet big on the team that you love.

However, he did the opposite and bet on the OTHER team beating his beloved. The amont of the bet was defined by “winning X amount would make me feel OK about losing the match”. So, if Arsenal win, he is happy as his team one (and who cares about money!). If Arsenal lose, bugger. But, at least he wins a few bob.

I started to think about this emotional hedging and how you can go Agile, and “turn it to 10″. What about hedging your marriage? “I bet $X that I will get divorced” To calculate the amount you need to add up how much you will lose if you are divorced (special note in California!) and add to that the amount of money that would allow you to have a midlife crisis and give you a chance getting another woman with a fancy red car ;)

I think about paying for Sam’s college. Maybe a hedge here could work? You can go down the list and hedge against it all!

NOTE: Getting someone to take your hedge when you are involved is a lot harder!

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