IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v21y1975i9p997-1006.html
   My bibliography  Save this article

Optimal Allocation of Resources in a Pari-Mutuel Setting

Author

Listed:
  • Bernard Rosner

    (Channing Laboratory, Boston City Hospital, Harvard Medical School and Harvard University)

Abstract

This article deals with an optimal algorithm for wagering in a pari-mutuel situation given that one is a perfect handicapper. A general rule is given for all pari-mutuel events with mutually exclusive outcomes. The rule has several surprising aspects which differ considerably from previous betting rules. The rule is useful when one's own bet is small relative to the total amount bet by the public. The optimality criterion is that of maximizing the expected log return.

Suggested Citation

  • Bernard Rosner, 1975. "Optimal Allocation of Resources in a Pari-Mutuel Setting," Management Science, INFORMS, vol. 21(9), pages 997-1006, May.
  • Handle: RePEc:inm:ormnsc:v:21:y:1975:i:9:p:997-1006
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.21.9.997
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erhan Bayraktar & Alexander Munk, 2016. "High-Roller Impact: A Large Generalized Game Model of Parimutuel Wagering," Papers 1605.03653, arXiv.org, revised Mar 2017.
    2. Rosenbloom, E. S., 2003. "A better probability model for the racetrack using Beyer speed numbers," Omega, Elsevier, vol. 31(5), pages 339-348, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:21:y:1975:i:9:p:997-1006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.