Equilibria doesn't mean that each party is making the best decision for themselves, but that they are making the best decision relatively to all other parties actions. In this case, it is in the best interest of the large bettors for everyone to wait until limits increase. It makes no difference to small bettors either way.
This would hold true if we could definite it as a 2x2 matrix. If we could think of Small Bettors as one collective group and Large Bettors as another.
In reality, lines move closer to parity with every dollar bet. If all players collude to wait for the limits to increase, then the one player who does NOT wait gains the most. Each additional player who does NOT wait gains less than the first, but more than the players who are waiting, and quickly we discover that the only equilibria is no players waiting.
The best town is the one in which no one is a thief. The best place to be a thief is a town without one.
This would hold true if we could definite it as a 2x2 matrix. If we could think of Small Bettors as one collective group and Large Bettors as another.
In reality, lines move closer to parity with every dollar bet. If all players collude to wait for the limits to increase, then the one player who does NOT wait gains the most. Each additional player who does NOT wait gains less than the first, but more than the players who are waiting, and quickly we discover that the only equilibria is no players waiting.
The best town is the one in which no one is a thief. The best place to be a thief is a town without one.