Summary
The gambling problem of “Red-and-Black” casinos in the presence of inflation is introduced. The optimality of the bold strategy is shown when the lottery is subfair or fair. The non-optimality of the bold strategy is also shown when the lottery is superfair.
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Chen, R. Subfair “Red-and-Black” in the presence of inflation. Z. Wahrscheinlichkeitstheorie verw Gebiete 42, 293–301 (1978). https://doi.org/10.1007/BF00533465
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DOI: https://doi.org/10.1007/BF00533465