E21 - Can you lose money picking 60% winners?
Business of Betting Podcast
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The Kelly Criterion for Risk Aversion
Jake Wallis: Can you go into some of the utility aspect of it? Because I'm thinking in my head, if I had Bill Gates and Mark Zuckerberg in a room and they were feeling very friendly and they said, look, you can play this game uncapped. It will put a smart contract in place. Whatever the number is at the end of the time you want to play and you press finish, that will be automatically sent to your account. And I was pretty comfortable that I was going to be paid in that situation.Wallis: The Kelly criterion is consistent with an investor having log utilities. So that means that they value different levels of wealth equal to the natural log of
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