In gambling a Dutch book or lock is a set of odds and bets which guarantees a profit, regardless of the outcome of the gamble. It is associated with probabilities implied by the odds not being coherent.
In economics a Dutch book usually refers to a sequence of trades that would leave one party strictly worse off and another strictly better off. Typical assumptions in consumer choice theory rule out the possibility that anyone can be Dutch-booked.
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Famous quotes containing the words dutch and/or book:
“The French courage proceeds from vanity—the German from phlegm—the Turkish from fanaticism & opium—the Spanish from pride—the English from coolness—the Dutch from obstinacy—the Russian from insensibility—but the Italian from anger.”
—George Gordon Noel Byron (1788–1824)
“His eye had become minutely exact as to the book and its position. Then he resolved that he would not look at the book again, would not turn a glance on it unless it might be when he had made up his mind to reveal its contents.”
—Anthony Trollope (1815–1882)