Price of information in games of chance: A statistical physics approach.

ABSTRACT: Information in the form of data, which can be stored and transferred between users, can be viewed as an intangible commodity, which can be traded in exchange for money. Determining the fair price at which a string of data should be traded is an important and open problem in many settings. In this work we develop a statistical physics framework that allows one to determine analytically the fair price of information exchanged between players in a game of chance. For definiteness, we consider a game where N players bet on the binary outcome of a stochastic process and share the entry fees pot if successful. We assume that one player holds information about past outcomes of the game, which they may either use exclusively to improve their betting strategy or offer to sell to anoth

SUBMITTER: Gamberi L 

PROVIDER: S-EPMC7616869 | biostudies-literature | 2024 Sep

REPOSITORIES: biostudies-literature