Betting on Brexit


A popular approach to defining subjective probabilities is to ask, under what terms would you be willing to bet on this outcome. “I’d be willing to bet” is a common way of expressing confidence. Presumably that’s what Michael Gove is appealing to here:

Gove insisted the UK would still definitely leave on 31 October, saying he had even made a bet with Matt Hancock, the health secretary, that it would happen.

Sounds pretty convincing. Except… It’s another member of the cabinet that is taking the other side of the bet. And not just any other member, but the health secretary, whose preparations are kind of important.

So, we are left with the following options:

  1. The cabinet has no idea what’s going to happen next week. And instead of spending their time earnestly trying to figure it out, they’re gambling on the outcome.
  2. Insiders are entirely confident that Brexit will happen on 31 October, but the health secretary is clueless. And the Chancellor of the Duchy of Lanchester (that is genuinely his cabinet job title), instead of trying to bring him up to speed, is taking advantage of his cluelessness to make some money with a bet whose outcome he has covert information about.
  3. This is just another ridiculous story made up by what are supposed to be responsible public servants.

I suppose he didn’t say what odds he’d given Hancock…

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