News for hackers. Stuff that matters.
Re:The Line Between Aggressive and Crazy by fanzhang on Tuesday October 31, 2017 @01:27AM (#15591270)
Generally the Kelly Criterion is the optimal play strategy for the entire game if and only if your utility in final payouts is the log of the payout.

In the Haghani & Dewey 2016 experiment log utility is violated in two ways:

- A $250 cap on payouts.

- The fact that $250 payout to participants was on TOP of participant's current wealth, making utility approximately linear.

There are no comments on this comment yet.