## Tom Flowerdew

Research Student

Fylde College

Lancaster University

Bailrigg

Lancaster

United Kingdom

LA1 4YF

### Thesis Title

Betting Markets and Strategies

### Thesis Outline

When given an edge when gambling on sporting events, or investing on the stock market, a question arises: 'What is the optimal way to increase my wealth, given some measure of risk and reward?' One way to define this measure is to optimise the logarithm of an investor's terminal wealth, then letting this terminal time to tend towards infinity. This analysis results in the Kelly criterion, for which the amount of money invested is proportional to the investor's current wealth and the magnitude of the edge.

My PhD is concerned with expanding the original theory, and subsequent literature in order to take account of more complex factors. As an example, there has already been developments where the probability of a sporting event being a success is taken to be a random variable, with its probability distribution being learned about as time passes.

The PhD is in partnership with ATASS Sports

### Web Links

My personal website

http://www.lancs.ac.uk/~flowerdt/