Optimal Allocation of Resources in a Pari-Mutuel Setting

Bernard Rosner
Additional contact information
Bernard Rosner: Channing Laboratory, Boston City Hospital, Harvard Medical School and Harvard University

Management Science, 1975, vol. 21, issue 9, 997-1006

Abstract: This article deals with an optimal algorithm for wagering in a pari-mutuel situation given that one is a perfect handicapper. A general rule is given for all pari-mutuel events with mutually exclusive outcomes. The rule has several surprising aspects which differ considerably from previous betting rules. The rule is useful when one's own bet is small relative to the total amount bet by the public. The optimality criterion is that of maximizing the expected log return.

Date: 1975
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.21.9.997 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:21:y:1975:i:9:p:997-1006

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().