Discounted and Rapid Subfair Red-and-Black
Klugman, Stuart
Ann. Statist., Tome 5 (1977) no. 1, p. 734-745 / Harvested from Project Euclid
A gambler seeks to maximize the expected utility earned upon reaching a goal in a game where he is allowed at each stage to stake any amount of his current fortune. He wins each bet with probability $w$. In the discounted case the utility at the goal is $\beta^n$ where $\beta$, the discount factor, is in $(0, 1)$ and $n$ is the number of plays used to reach the goal. In the rapid case the utility at the goal is 1 and the gambler seeks to minimize his expected playing time given he reaches the goal. Here all optimal strategies are characterized when $w \leqq \frac{1}{2}$ for the discounted case and when $w < \frac{1}{2}$ for the rapid case. It is shown that when $w < \frac{1}{2}$ the set of rapidly optimal strategies coincides with the set of optimal strategies for the discounted case.
Publié le : 1977-07-14
Classification:  Gambling problem,  red-and-black,  optimal strategy,  bold strategy,  stop rule,  60G35,  93E99
@article{1176343896,
     author = {Klugman, Stuart},
     title = {Discounted and Rapid Subfair Red-and-Black},
     journal = {Ann. Statist.},
     volume = {5},
     number = {1},
     year = {1977},
     pages = { 734-745},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1176343896}
}
Klugman, Stuart. Discounted and Rapid Subfair Red-and-Black. Ann. Statist., Tome 5 (1977) no. 1, pp.  734-745. http://gdmltest.u-ga.fr/item/1176343896/