Related papers: Analogy Between Gambling and Measurement-Based Wor…
Betting games provide a natural setting to capture how information yields strategic advantage. The Kelly criterion for betting, long a cornerstone of portfolio theory and information theory, admits an interpretation in the limit of…
We present quantitative relations between work and information that are valid both for finite sized and internally correlated systems as well in the thermodynamical limit. We suggest work extraction should be viewed as a game where the…
The amount of extractable work from a physical system is fundamentally connected to the information available about its state, as illustrated by Maxwell's demon and the Gibbs paradox. In standard thermodynamic protocols involving…
For gambling on horses, a one-parameter family of utility functions is proposed, which contains Kelly's logarithmic criterion and the expected-return criterion as special cases. The strategies that maximize the utility function are derived,…
The main purpose of this study is to introduce a semi-classical model describing betting scenarios in which, at variance with conventional approaches, the payoff of the gambler is encoded into the internal degrees of freedom of a quantum…
We study the capital growth in gambling with (and without) side information and memory effects. We derive several equalities for gambling, which are of similar form to the Jarzynski equality and its extension to systems with feedback…
A sequence of spin-1/2 particles polarised in one of two possible directions is presented to an experimenter, who can wager in a double-or-nothing game on the outcomes of measurements in freely chosen polarisation directions. Wealth is…
In an information-processing investment game, such as the growth of a population of organisms in a changing environment, Kelly betting maximizes the expected log rate of growth. In this paper, we show that Kelly bets are closely related to…
We establish fundamental connections between utility theories of wealth from the economic sciences and information-theoretic quantities. In particular, we introduce operational tasks based on betting where both gambler and bookmaker have…
The focal point of this paper is the so-called Kelly Criterion, a prescription for optimal resource allocation among a set of gambles which are repeated over time. The criterion calls for maximization of the expected value of the…
In 1956 John Kelly wrote a paper at Bell Labs describing the relationship between gambling and Information Theory. What came to be known as the Kelly Criterion is both an objective and a closed-form solution to sizing wagers when odds and…
In thermodynamics, an agent's ability to extract work is fundamentally constrained by their environment. Traditional frameworks struggle to capture how strategic decision-making under uncertainty, particularly an agent's tolerance for risk,…
We consider games of chance played by someone with external capital that cannot be applied to the game and determine how this affects risk-adjusted optimal betting. Specifically, we focus on Kelly optimization as a metric, optimizing the…
This paper considers information sharing in a multi-player repeated game. Every round, each player observes a subset of components of a random vector and then takes a control action. The utility earned by each player depends on the full…
Models of adaptive bet-hedging commonly adopt insights from Kelly's famous work on optimal gambling strategies and the financial value of information. In particular, such models seek evolutionary solutions that maximize long term average…
Information engines can convert thermal fluctuations of a bath at temperature $T$ into work at rates of order $k_\mathrm{B}T$ per relaxation time of the system. We show experimentally that such engines, when in contact with a bath that is…
We propose a theoretical model for a colloidal heat engine driven by a feedback protocol that is able to fully convert the net heat absorbed by the hot bath into extracted work. The feedback protocol, inspired by gambling strategies,…
We study the computation contests where players compete for searching a solution to a given problem with a winner-take-all reward. The search processes are independent across the players and the search speeds of players are proportional to…
Proper balance between exploitation and exploration is what makes good decisions, which achieve high rewards like payoff or evolutionary fitness. The Infomax principle postulates that maximization of information directs the function of…
Work can be extracted from a single heat bath if additional information is available. For the paradigmatic case of a Brownian particle in a harmonic potential, whose position has been measured with finite precision, we determine the optimal…