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Yes, but value is not created out of thin air, you need capital to create value, i.e. you need to be wealthy.

So you could extend the yard-sale model and include a rule that after each round, each $ will turn into $1.5 with some probability.

Guess what? Now the rich players can't just risk higher stakes in the coinflip games, they will also have more opportunity to introduce more money into the game through value creation.

So that would make the outcome even more extreme than the standard yard-sale model, not less.



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However, the outcome of such a system would be that there's more stuff than ever at the yard sale. Things that didn't previously exist.

Therefore, the fact that new options exist at the yard sale is itself a form of wealth.


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