# [EM] RE : Re: Range voting, zero-info strategy simulation (raphfrk)

raphfrk at netscape.net raphfrk at netscape.net
Wed Nov 1 08:28:02 PST 2006

```From: stepjak at yahoo.fr
> --- raphfrk at netscape.net a écrit :
> > A voter might be willing to use option C even though D gives a better
> > expected value.
>
> In my opinion, if the voter prefers to vote option C than option D,
> because he doesn't want to risk the -1 outcome, then he has not
> correctly estimated that value as being -1.

I guess it depends on how you define it. However, the example often given
is which would you prefer?

51% chance of getting \$200
100% chance of getting \$100

Risk aversion is a known economic effect.

It only happens when you are talking about a major portion of a person's
wealth.

> Do feel this is a big problem? I have seen more concern that voters
> will vote the opposite way: Commit to a favorite candidate and cut
> off any chance of even electing the second favorite.

No, I don't think this is a problem. In fact, having voters who
don't vote in the extremes can help smooth out election results,
so they don't jump between two very different results.

I was trying to give a rationality for people not using maximally

>
> > The example given was:
> >
> > Assuming that you start with \$1 and can place a bet on a fair coin. If
> > you win, you get 1.05 times your stake (and your stake back). You get to
> > repeat the gamble as often as you want, but can only use your initial
> > stake and any money you win.
> >
> > What is the optimal amount to bet in order to maximise the rate of
> > income. Clearly, if you bet all your money you will with near certainty
> > be bankrupt after say, 10 rounds.
>
> I'm pretty sure you'd want to place a lot of very small bets. Do you
>

Yeah, you would try to max the log of the expected result.

This works out at betting approx

0.5*(1 - 1/(g))

where g is the gain for winning (1.05)

This works out in the example above of 0.0238 times your total.

Betting anything higher than that gets exponentially more risky.

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