nightoftheiguana wrote:
>A maxEV player would be indifferent between a 50% chance at $100 or a fixed $50.
>
>A Kelly player would consider the variance and their current bankroll. If the Kelly CE of the gamble exceeded $50, they would gamble.
I believe the Kelly CE is always less than EV so that the Kelly player
would always choose the fixed $50. The amount that's fixed is the
amount to be determined. The question is at what fixed payout,
necessarily being less than $50, would the Kelly player equate a 50%
chance at $100.
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Posted by: 007 <007@embarqmail.com>
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