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The Labouchere gambling system is hypothesized to increase the probability of winning a predetermined arbitrary profit in a gambling system such as a coin flip or a roulette game in which both payouts and odds are 1:1. However, use of the…

General Finance · Quantitative Finance 2017-07-04 Jake Billings , Sebastian Del Barco

No matter how much some gamblers occasionally win, as long as they continue to gamble, sooner or later they will lose more to the casino, which is the so-called long bet will lose. Our results demonstrate the counter-intuitive phenomenon,…

General Finance · Quantitative Finance 2022-12-23 Zengjing Chen , Huaijin Liang , Wei Wang , Xiaodong Yan

The recent framework of performative prediction is aimed at capturing settings where predictions influence the target/outcome they want to predict. In this paper, we introduce a natural multi-agent version of this framework, where multiple…

Machine Learning · Computer Science 2022-01-26 Georgios Piliouras , Fang-Yi Yu

We propose a model of two-way selection system. It appears in the processes like choosing a mate between men and women, making contracts between job hunters and recruiters, and trading between buyers and sellers. In this paper, we propose a…

General Physics · Physics 2015-02-20 Bin Zhou , Shujia Qin , Xiao-Pu Han , Zhe He , Jia-Rong Xie , Bing-Hong Wang

A multi-fidelity simulator is a numerical model, in which one of the inputs controls a trade-off between the realism and the computational cost of the simulation. Our goal is to estimate the probability of exceeding a given threshold on a…

Methodology · Statistics 2021-03-31 Rémi Stroh , Julien Bect , Séverine Demeyer , Nicolas Fischer , Emmanuel Vazquez

In performative prediction, predictions guide decision-making and hence can influence the distribution of future data. To date, work on performative prediction has focused on finding performatively stable models, which are the fixed points…

Machine Learning · Computer Science 2021-06-17 John Miller , Juan C. Perdomo , Tijana Zrnic

In biology and ecology, individuals or communities of individuals living in unpredictable environments often alternate between different evolutionary strategies to spread and reduce risks. Such behavior is commonly referred to as…

Populations and Evolution · Quantitative Biology 2015-03-11 Jorge Hidalgo , Simone Pigolotti , Miguel A. Munoz

There is a sudden surge to model human behavior due to its vast and diverse applications which includes modeling public policies, economic behavior and consumer behavior. Most of the human behavior itself can be modeled into a choice…

Machine Learning · Computer Science 2020-07-06 Prakash Rajan , Krishna P. Miyapuram

In this paper, we present betting strategy of a football game using probability theory. We know all betting houses offer slightly unfair odds towards the player. Here we discuss a simple way to figure out which betting house is offering…

Applications · Statistics 2017-06-07 Kanika Saha , Ananya Lahiri

Prediction markets mobilize financial incentives to forecast binary event outcomes through the aggregation of dispersed beliefs and heterogeneous information. Their growing popularity and demonstrated predictive accuracy in political…

General Economics · Economics 2026-01-29 Bridget Smart , Ebba Mark , Anne Bastian , Josefina Waugh

We consider a version of the ultimatum game which simultaneously combines reactive and Darwinian aspects with offers in [0,1]. By reactive aspects, we consider the effects that lead the player to change their offer given the previous…

Physics and Society · Physics 2019-10-02 Roberto da Silva , Pablo Valverde , Luis C. Lamb

This work proposes a new exchangeability test for a random sequence through a martingale based approach. Its main contributions include: 1) an additive martingale which is more amenable for designing exchangeability tests by exploiting the…

Statistics Theory · Mathematics 2020-07-27 Liang Dai , Mohamed-Rafik Bouguelia

Influence maximization in networks is a central problem in machine learning and causal inference, where an intervention on a subset of individuals triggers a diffusion process through the network. Existing approaches typically optimize…

Methodology · Statistics 2026-03-13 Renjie Cao , Zhuoxin Yan , Xinyan Su , Zhiheng Zhang

Bayesian and frequentist methods differ in many aspects, but share some basic optimality properties. In practice, there are situations in which one of the methods is more preferred by some criteria. We consider the case of inference about a…

Statistics Theory · Mathematics 2009-08-25 Ao Yuan

What do binary (or probabilistic) forecasting abilities have to do with overall performance? We map the difference between (univariate) binary predictions, bets and "beliefs" (expressed as a specific "event" will happen/will not happen) and…

General Finance · Quantitative Finance 2020-04-10 Nassim Nicholas Taleb

Different agents need to make a prediction. They observe identical data, but have different models: they predict using different explanatory variables. We study which agent believes they have the best predictive ability -- as measured by…

Theoretical Economics · Economics 2023-02-01 Jose Luis Montiel Olea , Pietro Ortoleva , Mallesh M Pai , Andrea Prat

Evaluating the accuracies of models for match outcome predictions is nice and well but in the end the real proof is in the money to be made by betting. To evaluate the question whether the models developed by us could be used easily to make…

Applications · Statistics 2017-02-21 Albrecht Zimmermann

Bet-hedging is a phenotype diversification strategy that combines a fast-growing vulnerable phenotype with a slow-growing resistant phenotype. In environments switching between favorable and unfavorable conditions, bet-hedging optimizes…

Populations and Evolution · Quantitative Biology 2024-06-18 Manuel Dávila-Romero , Francisco J. Cao-García , Luis Dinis

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…

Quantum Physics · Physics 2021-09-22 Salvatore Tirone , Maddalena Ghio , Giulia Livieri , Vittorio Giovannetti , Stefano Marmi

Estimating win probability is one of the classic modeling tasks of sports analytics. Many widely used win probability estimators use machine learning to fit the relationship between a binary win/loss outcome variable and certain game-state…

Methodology · Statistics 2025-08-21 Ryan S. Brill , Ronald Yurko , Abraham J. Wyner