Neglecting the risk of the bet not being fulfilled, it is worth it for me if my probability of winning is higher than 1⁄3 (= 1/(2*10^3/(1*10^3) + 1)).
I think you meant 2⁄3 (payoff is 2:1 in favour of David)
Thanks, Tom! Yes, I meant 2⁄3, and made the bet based on this. Corrected.
I think you meant 2⁄3 (payoff is 2:1 in favour of David)
Thanks, Tom! Yes, I meant 2⁄3, and made the bet based on this. Corrected.