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arxiv: 0709.4137 · v1 · submitted 2007-09-26 · ⚛️ physics.data-an · physics.soc-ph

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

classification ⚛️ physics.data-an physics.soc-ph
keywords additionbookmakerforecastgamblerprobabilitiesvelocityabsencebets
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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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