BETTER PRIORS FOR BAYESIAN BETTORS |
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Authors: | Dean Isaacson Glen Meeden |
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Affiliation: | Department of Statistics, Iowa State University |
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Abstract: | Consider the game where a Bayesian investor places a series of bets on the outcomes of a sequence of tosses of a coin with odds set by a Bayesian bookie. It is shown that at each toss the investor can have non-negative expected winnings even though after many tosses the two posterior distributions are nearly equivalent. |
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Keywords: | Bayesian decision makingy betting systems long run frequency |
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