A Mathematical Analysis of the Card Game of Betweenies through Kelly's Criterion
In the game of Betweenies, the player is dealt two cards out of a deck and bets on the probability that the third card to be dealt will have a numerical value in between the values of the first two cards. In this work, we present the exact rules of the two main versions of the game, and we study the...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2010-01-01
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| Series: | Journal of Probability and Statistics |
| Online Access: | http://dx.doi.org/10.1155/2010/313148 |
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| Summary: | In the game of Betweenies, the player is dealt two cards out of a deck and bets on the probability that the third card to be dealt will have a numerical value in between the values of the first two cards. In this work, we
present the exact rules of the two main versions of the game, and we study the optimal betting strategies. After
discussing the shortcomings of the direct approach, we introduce an information-theoretic technique, Kelly's
criterion, which basically maximizes the expected log-return of the bet: we offer an overview, discuss feasibility
issues, and analyze the strategies it suggests. We also provide some gameplay simulations. |
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| ISSN: | 1687-952X 1687-9538 |