Optimum No-Risk Strategy for Win-Place Pari-Mutuel Betting

The problem of finding an optimum, no-risk strategy for placing simultaneous win and place pari-mutuel bets is formulated in terms of a linear programming problem. For a basic feasible solution (i.e., a profitable schedule of bets) to exist, it is necessary for the win and place pools to weight the contestants differently. If the stake holder removes a fraction of the pool, then a solution is not guaranteed, but will exist if this difference in win-place weighting is sufficient. A simple example is presented.

• 저널Management Science · 10(3) · 574–577
• 토픽Simulation Techniques and Applications · Management Science and Operations Research
• DOI10.1287/mnsc.10.3.574
• 저자Kenneth E. Willis