The relativistic velocity addition law optimizes a forecast gambler's profit

Details The relativistic velocity addition law optimizes a forecast gambler's profit The relativistic velocity addition law optimizes a forecast gambler's profit

2007-09-26

arxiv.org/abs/0709.4137v1

Physics

Data Analysis, Statistics and Probability

APFA 6 - Applications of Physics in Financial Analysis 6th International Conference, 4-7 July 2007, Lisbon, Portugal

Scientific paper

We extend the projective covariant bookmaker's bets model to the forecasting gamblers case. The probability of correctness of forecasts shifts probabilities of branching. The formula for the shift of probabilities leads to the velocity addition rule of the special theory of relativity. In the absence of information about bookmaker's wagers the stochastic logarithmic rates completely determines the optimal stakes of forecast gambler.

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