Translator Disclaimer
May 1999 Parrondo's paradox
D. Abbott, G. P. Harmer
Statist. Sci. 14(2): 206-213 (May 1999). DOI: 10.1214/ss/1009212247

Abstract

We introduce Parrondo's paradox that involves games of chance. We consider two fair gambling games, A and B, both of which can be made to have a losing expectation by changing a biasing parameter $\epsilon$. When the two games are played in any alternating order, a winning expectation is produced, even though A and B are now losing games when played individually. This strikingly counter­intuitive result is a consequence of discrete­time Markov chains and we develop a heuristic explanation of the phenomenon in terms of a Brownian ratchet model. As well as having possible applications in electronic signal processing, we suggest important applications in a wide range of physical processes, biological models, genetic models and sociological models. Its impact on stock market models is also an interesting open question.

Citation

Download Citation

D. Abbott. G. P. Harmer. "Parrondo's paradox." Statist. Sci. 14 (2) 206 - 213, May 1999. https://doi.org/10.1214/ss/1009212247

Information

Published: May 1999
First available in Project Euclid: 24 December 2001

zbMATH: 1059.60503
MathSciNet: MR1722065
Digital Object Identifier: 10.1214/ss/1009212247

Rights: Copyright © 1999 Institute of Mathematical Statistics

JOURNAL ARTICLE
8 PAGES


SHARE
Vol.14 • No. 2 • May 1999
Back to Top