Different Measures of Win Rate for Optimal Proportional Betting
AbstractIt is well known that all betting systems applied to independent, repeated, and identically distributed trials will result in the same expected gain per average unit wagered as that which applies to a single trial. This paper develops the asymptotic and paradoxical manner in which that constant win rate is maintained for optimal proportional betting according to the Kelly criterion. The appropriateness of using this traditional measure of win rate for proportional betting is contrasted with that of various alternatives.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 30 (1984)
Issue (Month): 12 (December)
betting systems; Kelly criterion;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.