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Losing Strategies can win by Parrondo’s Paradox

This article talks about Parrondo’s Paradox, which can make two losing gambling games be set up such that, when they are played one after the other, they becoming winning. It gives us an example of two games, one game A uses three biased coins, and the other game B consist of playing with two biased coins. Both of them are losing games, but if we play two games of A and two games of B and so on, the result will be changed. The article used the flashing brown Ian ratchet to explain the game by analogy.

In class, we learn about game theory and the dominant strategies for different games. The development of this new strategy, the Parrondo’s Paradox will be useful for lots of different disciplines such as economics and social dynamics. For example, for modeling cases in which declining birth and death processes combine in a beneficial way.

 

The article: https://www.nature.com/articles/47220

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