Betting dynamics in a toss-coin game

Abstract

We use a wealth-­limited interaction to analyze betting dynamics in an online game with real participants. We found that players' lifetime tend to cluster at extreme values ­– very short and very long lifetime. Together with information on the number of bets and accumulated money, we derive some strategies used by the players. The parameter trends obtained were compared with those obtained from economic models. It was shown that these economic models lack things which can simulate the dynamics found in this work.