Optimal Gambling Strategies

  • Martin Beckmann


Optimal Gambling Strategies are defined as those that maximize the expected utility of the gambler’s fortune after a given number N of trials, at each of which he can bet at most his current wealth. They are discussed in terms of betting on a biassed coin with probability p > 0.5 for heads. We also develop a Bayesian approach to the case of an unknown bias. Dynamic Programming is the principal tool of this analysis.


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Copyright information

© Physica-Verlag Heidelberg 1995

Authors and Affiliations

  • Martin Beckmann
    • 1
  1. 1.Institut für Statistik und UnternehmensforschungTechnische Universität MünchenMünchenDeutschland

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