| Issue |
Europhys. Lett.
Volume 53, Number 4, February 2001
|
|
|---|---|---|
| Page(s) | 419 - 425 | |
| Section | General | |
| DOI | https://doi.org/10.1209/epl/i2001-00169-0 | |
| Published online | 01 December 2003 | |
Power law distribution of dividends in horse races
Department of Physics of Complex Systems,
Weizmann Institute of Science Rehovot 76100, Israel
Received:
8
August
2000
Accepted:
3
November
2000
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. Numerical simulations yield excellent agreement with the empirical data.
PACS: 02.50.-r – Probability theory, stochastic processes, and statistics / 05.40.-a – Fluctuation phenomena, random processes, noise and Brownian motion / 89.90.+n – Other topics of general interest to physicists
© EDP Sciences, 2001
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