Power-law distribution of dividends in horse races

نویسنده

  • Kibeom Park
چکیده

We discovered that the distribution of dividends in Korean horse races follows a power law. A simple model of betting is proposed, which reproduces the observed distribution. The model provides a mechanism to arrive at the true underlying winning probabilities, which are initially unknown, in a self-organized collective fashion, through the dynamic process of betting.

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تاریخ انتشار 2007