Seminar: The Jacob Ziv Communication and Information Theory seminar
Online Bookmaking
Lecturer:
Oron Sabag
Research Areas:
| In the dynamic world of online betting, bookmakers frequently update payoffs on event outcomes such as soccer games, elections, and more, responding to the flow of bets in pursuit of the best possible outcome. But can bookmakers guarantee any gain in the face of unpredictable gamblers and uncertain event outcomes? And if so, what is their optimal gain? In this talk, we will introduce the Optimal Online Bookmaking, a framework for addressing these questions under worst-case scenarios. The problem is related to sequential decision-making processes but in the Blackwell Approachiability setting as the event’s outcome is unknown until the very end of the betting rounds. We will present explicit solution to the problem by providing the optimal bookmaker’s gain and low-complexity algorithms to achieve the latter.
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