The writers say that it "won't work in casino games"...
but what do they know? zg
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Paradox in Game Theory: Losing Strategy That Wins
By SANDRA BLAKESLEE
New York Times | SCIENCE
A Spanish physicist has discovered what appears to be a new law of nature that may help explain, among other things, how life arose out of a primordial soup, why President Clinton's popularity rose after he was caught in a sex scandal, and why investing in losing stocks can sometimes lead to greater capital gains.
Called Parrondo's paradox, the law states that two games guaranteed to make a player lose all his money will generate a winning streak if played alternately.
Named after its discoverer, Dr. Juan Parrondo, who teaches physics at the Complutense University in Madrid, the newly discovered paradox is inspired by the mechanical properties of ratchets -- the familiar saw-tooth tools used to lift automobiles and run self-winding wristwatches. By translating the properties of a ratchet into game theory -- a relatively new scientific discipline that seeks to extract rules of nature from the gains and losses observed in games -- Dr. Parrondo discovered that two losing games could combine to increase one's wealth.
"The importance of the paradox in real life remains to be seen," said Dr. Charles Doering, a mathematician at the University of Michigan, who is familiar with the research. "It gives us a new and unexpected view of a variety of phenomena," he said, "and who knows? Sometimes finding that one piece of the puzzle makes the whole picture suddenly clear."
Dr. Derek Abbott, director of the Center for Biomedical Engineering at the University of Adelaide in Australia, said that many scientists were intrigued by the paradox and had begun applying it to engineering, population dynamics, financial risk and other disciplines.
... continued at primary link below -
More links -
Ivars Peterson @ MAA.ORG
http://www.maa.org/mathland/mathtrek_3_6_00.html (Archive copy)
Parrondo's paradox simplified
http://seneca.fis.ucm.es/parr/GAMES/inbrief.html
but what do they know? zg
-------------------------------------
Paradox in Game Theory: Losing Strategy That Wins
By SANDRA BLAKESLEE
New York Times | SCIENCE
A Spanish physicist has discovered what appears to be a new law of nature that may help explain, among other things, how life arose out of a primordial soup, why President Clinton's popularity rose after he was caught in a sex scandal, and why investing in losing stocks can sometimes lead to greater capital gains.
Called Parrondo's paradox, the law states that two games guaranteed to make a player lose all his money will generate a winning streak if played alternately.
Named after its discoverer, Dr. Juan Parrondo, who teaches physics at the Complutense University in Madrid, the newly discovered paradox is inspired by the mechanical properties of ratchets -- the familiar saw-tooth tools used to lift automobiles and run self-winding wristwatches. By translating the properties of a ratchet into game theory -- a relatively new scientific discipline that seeks to extract rules of nature from the gains and losses observed in games -- Dr. Parrondo discovered that two losing games could combine to increase one's wealth.
"The importance of the paradox in real life remains to be seen," said Dr. Charles Doering, a mathematician at the University of Michigan, who is familiar with the research. "It gives us a new and unexpected view of a variety of phenomena," he said, "and who knows? Sometimes finding that one piece of the puzzle makes the whole picture suddenly clear."
Dr. Derek Abbott, director of the Center for Biomedical Engineering at the University of Adelaide in Australia, said that many scientists were intrigued by the paradox and had begun applying it to engineering, population dynamics, financial risk and other disciplines.
... continued at primary link below -
More links -
Ivars Peterson @ MAA.ORG
http://www.maa.org/mathland/mathtrek_3_6_00.html (Archive copy)
Parrondo's paradox simplified
http://seneca.fis.ucm.es/parr/GAMES/inbrief.html
