Friday, September 20, 2013

Fantasy Wealth Creation

NPR's Planet money has a fun story about the economy that is being created around fantasy sports. All these intermediaries are facilitating wealth creating transactions.
There's big money in fantasy sports. Last year, alone, people paid $1.7 billion to play in fantasy leagues. With all that money sloshing around, a fantasy economy has sprung up, giving rise to real businesses. Here are four of them.

They highlight:
  • Insurance - against the star player on your fantasy team getting injured.
  • Banking - to facilitate participation in multiple fantasy leagues.
  • Dispute Resolution - because not all fantasy contingencies are foreseen.
  • Extreme gaming - because once a week football games are not enough for your fantasy team.

1 comment:

  1. Wow. I find it hard to fathom that people pay real money to actually buy insurance for its characters in a fantasy game. A person would feel the need to win pretty badly, I'm guessing. I wondered if anyone had actually done a study on competitiveness among participants in fantasy football (because I- they did of course. Not the greatest study, the sample was small and consisted of all undergraduate students. People who participate do tend to be more competitive individuals than those who don't.