What feature(s)do both great bets and arbitrage have in common?

Question

Quizplus · Accepted Answer

Both great bets and arbitrage are ex-ante concepts, meaning their success depends on predicting future events correctly. They are also very rare unless the market is very imperfect, as these opportunities tend to be quickly exploited by market participants. Additionally, neither should require an initial cash outflow, as both rely on the opportunity for profit to arise naturally from market inefficiencies. Both great bets and arbitrage are ex-ante concepts, meaning they are evaluated before the outcome is determined. They are also rare occurrences unless the market is imperfect, providing an opportunity for profit. Neither great bets nor arbitrage should require an initial cash outflow, as both involve betting on outcomes that have a high probability of success.

What Feature(s)do Both Great Bets and Arbitrage Have in Common