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The Theory of Gambling and Statistical Logic, by Richard A. Epstein
Free Ebook The Theory of Gambling and Statistical Logic, by Richard A. Epstein
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Early in his rise to enlightenment, man invented a concept that has since been variously viewed as a vice, a crime, a business, a pleasure, a type of magic, a disease, a folly, a weakness, a form of sexual substitution, an expression of the human instinct. He invented gambling.
Recent advances in the field, particularly Parrondo's paradox, have triggered a surge of interest in the statistical and mathematical theory behind gambling. This interest was acknowledge in the motion picture, "21," inspired by the true story of the MIT students who mastered the art of card counting to reap millions from the Vegas casinos. Richard Epstein's classic book on gambling and its mathematical analysis covers the full range of games from penny matching to blackjack, from Tic-Tac-Toe to the stock market (including Edward Thorp's warrant-hedging analysis). He even considers whether statistical inference can shed light on the study of paranormal phenomena. Epstein is witty and insightful, a pleasure to dip into and read and rewarding to study. The book is written at a fairly sophisticated mathematical level; this is not "Gambling for Dummies" or "How To Beat The Odds Without Really Trying." A background in upper-level undergraduate mathematics is helpful for understanding this work.
- Comprehensive and exciting analysis of all major casino games and variants
- Covers a wide range of interesting topics not covered in other books on the subject
- Depth and breadth of its material is unique compared to other books of this nature
Richard Epstein's website: www.gamblingtheory.net
- Sales Rank: #829327 in eBooks
- Published on: 2012-12-28
- Released on: 2012-12-28
- Format: Kindle eBook
Review
"This special edition remains the comprehensive unified mathematical treatment for a wide range of games of chance and skill. It includes the counter-intuitive Parrondo's paradox: a winning strategy can result from switching between losing games. An entertainment for all who read it, a text for innovative university courses, and a reference for those concerned with probability and game theory."--Edward O. Thorp, author of BEAT THE DEALER and BEAT THE MARKET
Most helpful customer reviews
19 of 20 people found the following review helpful.
Not completely reliable
By Math Guy
Many readers will find this book to be an entertaining and useful
presentation of gambling ideas and lore. However, there are some errors in the "Basic Theorems" beginning on page 51. In particular,
Theorem V on page 60 is not correct. The "maximum boldness" strategy is need not be optimal in a subfair game when there is a bound on the
size of bets. Likewise "minimum boldness", also known as "timid
play" need not be optimal when there is a house minimum. (For
counterexamples, see the article by Heath, Pruitt, and Sudderth
in The Proceedings of the American Math. Soc. vol 43, pp. 498-507,
April 1972 and the article by Ruth in the Journal of Applied Probability, vol 36, pp. 837-851, September 1999.
10 of 10 people found the following review helpful.
Good Reference, But Needs an Errata-Corrected Printing
By Tim Clouse
A nice update of The Theory of Gambling and Statistical Logic, Revised Edition, but some topics were dropped and others added. As noted by other reviewers, it has typos. My copy has an errata list glued inside the cover, but it does not cover all the mistakes. For example the binomial distribution formula on page 19 (equation 2-11) should have q^(n-r), NOT q^(n-1). If you are going to use the formulas, verify them elsewhere first.
4 of 6 people found the following review helpful.
Easy to Read, Well Written
By Gary J. Nakauchi
I was a finance major and loved the way the theories were explained in a way which read easily, and less like a dictionary reads. I used it to supplement a day trading model, which, is another story for another time.
Gary Nakauchi
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