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The relativistic velocity addition law optimizes a forecast gambler's profit

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  • Edward W. Piotrowski

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  • Jerzy Luczka

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Abstract

We extend the projective covariant bookmaker's bets model to the forecasting gamblers case. The probability of correctness of forecasts shifts probabilities of branching. The formula for the shift of probabilities leads to the velocity addition rule of the special theory of relativity. In the absence of information about bookmaker's wagers the stochastic logarithmic rates completely determines the optimal stakes of forecast gambler.

Suggested Citation

  • Edward W. Piotrowski & Jerzy Luczka, "undated". "The relativistic velocity addition law optimizes a forecast gambler's profit," Departmental Working Papers 31, University of Bialtystok, Department of Theoretical Physics.
  • Handle: RePEc:sla:eakjkl:31
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    File URL: http://arxiv.org/pdf/0709.4137v1
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    References listed on IDEAS

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    1. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
    2. Anna Szczypinska & Edward W. Piotrowski, "undated". "Projective Market Model Approach to AHP Decision-Making," Departmental Working Papers 32, University of Bialtystok, Department of Theoretical Physics.
    3. Edward W. Piotrowski & Jan Sladkowski, "undated". "Geometry of Financial Markets - Towards Information Theory Model of Markets," Departmental Working Papers 26, University of Bialtystok, Department of Theoretical Physics.
    4. Marcin Makowski & Edward W. Piotrowski, "undated". "Quantum Cat's Dilemma: an Example of Intransitivity in a Quantum Game," Departmental Working Papers 28, University of Bialtystok, Department of Theoretical Physics.
    5. E. W. Piotrowski & M. Schroeder, 2007. "Kelly criterion revisited: optimal bets," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 57(2), pages 201-203, May.
    6. Edward W. Piotrowski & Malgorzata Schroeder, "undated". "Kelly Criterion Revisited: Optimal Bets," Departmental Working Papers 24, University of Bialtystok, Department of Theoretical Physics.
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    Cited by:

    1. Edward W. Piotrowski & Jan Sladkowski & Anna Szczypinska, "undated". "Reinforcement Learning in Market Games," Departmental Working Papers 30, University of Bialtystok, Department of Theoretical Physics.
    2. Edward W. Piotrowski & Jan Sladkowski & Anna Szczypinska, 2007. "Reinforcement learning in market games," Papers 0710.0114, arXiv.org.

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