Abstract
With the increased gambling tolerance, the economic stake of gambling on sports is growing bigger than ever before. One common type is the para mutual gambling, where the gamblers bet on the results of games, such as Jai Alai, dog racing, horse racing, etc. Uncertainties lie both in the game itself and in the bets made by all gamblers. This study attempts to develop the optimum betting strategies for Jai Alai games based on the rules, the historical results and the random returns of each game. Two main concerns of this study are: modeling the randomness in both the game and the gambler sides, and formulating multistage stochastic mixed-integer models for the strategy-making problem to maximize the return and control the risk as well.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Referneces
Andreff, W., & Szymańki, S. (2006). Handbook on the economics of sport. Cheltenham: Edward Elgar.
Bertsekas, D. P. (1987). Dynamic programming: Deterministic and stochastic models. Englewood Cliffs, NJ: Prentic-Hall, Inc.
Birge, J. R., & Louveaux, F. (1997). Introduction to stochastic programming. New York: Springer.
Brook, A., Kendirck, D., & Meeraus, A. (1992). GAMS: A user’s guide. South San Francisco, CA: The Scientific Press.
Butenko, S., Gil-Lafuente, J., & Pardalos, P. M. (2004). Economics, management and optimization in sports. New York: Springer.
Byrne, P. J., & Hesse, R. (1996). A Markov chain analysis of the game of Jai Alai. Mathematics Magazine, 69(4), 279–283.
Floudas, C. (1995) Nonlinear and mixed integer optimization: Fundamentals and application. New York: Oxford University Press.
Goodfriend, M. J., & Friedman, J. H. (1975, November). A Monte-carlo analysis of Jai Alai. ORSA/TIMS Joint International Meeting.
Goodfriend, M. J., & Friedman, J. H. (1977, November). Some further analysis of Jai Alai. ORSA/TIMS Joint International Meeting.
Lane, D., & Ziemba, W. T. (2004). Jai Alai arbitrage strategies. The European Journal of Finance, 10, 353–369.
Moser, L. E. (1982). A mathematical analysis of the game of Jai Alai. The American Mathematical Monthly, 89(5), 292–300.
Rockafellar, R. T., & Uryasev, S. (2000). Optimization of conditional value-at-risk. Journal of Risk, 2(3), 21–41.
Sackrowitz, H. (2004). Dynamic programming and time related strategies in sports. In S. Butenko, J. Gil-Lafuente, & P. M. Pardalos (Eds.), Economics, management and optimization in sports. New York: Springer.
Skiena, S. S. (1988). A fairer scoring system for Jai-Alai. Interface, 33(6), 35–41.
Skiena, S. S. (2001). Calculated bets: Computers, gambling, and mathematical modeling to win. New York: Cambridge University Press.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-VerlagBerlin Heidelberg
About this chapter
Cite this chapter
Zheng, Q.P., Lou, Y., Pardalos, P.M. (2010). Economics of Gambling on Sports: A Multistage Stochastic Programming Approach to American Jai Alai Gambling Strategies. In: Butenko, S., Gil-Lafuente, J., Pardalos, P. (eds) Optimal Strategies in Sports Economics and Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13205-6_11
Download citation
DOI: https://doi.org/10.1007/978-3-642-13205-6_11
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-13204-9
Online ISBN: 978-3-642-13205-6
eBook Packages: Business and EconomicsEconomics and Finance (R0)