Related papers: Testing by Betting while Borrowing and Bargaining
We consider 2-player zero-sum stochastic games where each player controls his own state variable living in a compact metric space. The terminology comes from gambling problems where the state of a player represents its wealth in a casino.…
The granting process of all credit institutions rejects applicants who seem risky regarding the repayment of their debt. A credit score is calculated and associated with a cut-off value beneath which an applicant is rejected. Developing a…
In this work, we consider classification of agents who can both game and improve. For example, people wishing to get a loan may be able to take some actions that increase their perceived credit-worthiness and others that also increase their…
We study the problem of optimizing the betting frequency in a dynamic game setting using Kelly's celebrated expected logarithmic growth criterion as the performance metric. The game is defined by a sequence of bets with independent and…
Kelly betting is a prescription for optimal resource allocation among a set of gambles which are typically repeated in an independent and identically distributed manner. In this setting, there is a large body of literature which includes…
Parrondo's coin-tossing games comprise two games, $A$ and $B$. The result of game $A$ is determined by the toss of a fair coin. The result of game $B$ is determined by the toss of a $p_0$-coin if capital is a multiple of $r$, and by the…
Frazzini and Pedersen (2014) Betting Against Beta (BAB) factor is based on the idea that high beta assets trade at a premium and low beta assets trade at a discount due to investor funding constraints. However, as argued by Campbell and…
Humanity has been fascinated by the pursuit of fortune since time immemorial, and many successful outcomes benefit from strokes of luck. But success is subject to complexity, uncertainty, and change - and at times becoming increasingly…
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…
We discuss the objectives of automation equipped with non-trivial decision making, or creating artificial intelligence, in the financial markets and provide a possible alternative. Intelligence might be an unintended consequence of…
Graph games lie at the algorithmic core of many automated design problems in computer science. These are games usually played between two players on a given graph, where the players keep moving a token along the edges according to…
We theoretically analyze the problem of testing for $p$-hacking based on distributions of $p$-values across multiple studies. We provide general results for when such distributions have testable restrictions (are non-increasing) under the…
This theoretical model contains concept, equations, and graphical results for venture banking. A system of 27 equations describes the behavior of the venture-bank and underwriter system allowing phase-space type graphs that show where…
In this work, we proposed a new $N$-person game in which the players can bet on two options, for example represented by two boxers. Some of the players have privileged information about the boxers and part of them can provide this…
Hypothesis testing via e-variables can be framed as a sequential betting game, where a player each round picks an e-variable. A good player's strategy results in an effective statistical test that rejects the null hypothesis as soon as…
Consensus algorithms facilitate agreement on and resolution of blockchain functions, such as smart contracts and transactions. Ethereum uses a Proof-of-Stake (PoS) consensus mechanism, which depends on financial incentives to ensure that…
We look at the Florida Lottery records of winners of prizes worth $600 or more. Some individuals claimed large numbers of prizes. Were they lucky, or up to something? We distinguish the "plausibly lucky" from the "implausibly lucky" by…
A mediator observes no-regret learners playing an extensive-form game repeatedly across $T$ rounds. The mediator attempts to steer players toward some desirable predetermined equilibrium by giving (nonnegative) payments to players. We call…
Wealthy individuals may be less tempted to defect than those with comparatively low payoffs. To take this into consideration, we introduce coevolutionary success-driven multigames in structured populations. While the core game is always the…
We look at substructural calculi from a game semantic point of view, guided by certain intuitions about resource conscious and, more specifically, cost conscious reasoning. To this aim, we start with a game, where player I defends a claim…