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by sushibowl
1051 days ago
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The gamble is set up in such a way that there is a fairly large chance that you will lose money, coupled with a tiny chance of an incredibly large gain. The article, just like the poster above you, characterizes a series of bets into win/loss pairs that add up to a 0.9 return per pair. There are lots of sequences that can be characterized this way. However there will be a few sequences that contain many, many heads and win a lot of money. There are of course also a few sequences with many tails, but their loss cannot decrease below zero so it is contained. So it's a little bit like a lottery ticket, where the positive gains are extremely concentrated into a very small lucky group. The more rounds of the gamble you play, the smaller the lucky winning group gets, and the larger their wealth. |
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