System and method for permutation betting

a permutation betting and system technology, applied in the field of computer systems, can solve the problems of limiting what participants, affecting liquidity and information aggregation, and not directly boosting the horse's odds to show, so as to maximize the worst-case profit of an auctioneer

Inactive Publication Date: 2008-09-11
OATH INC
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

[0007]Briefly, the present invention may provide a system and method for permutation betting. To do so, a permutation betting engine may be provided for providing services to support betting on an outcome resulting in an ordinal ranking of objects. In an embodiment, a permutation betting engine may include an operably coupled model generator for creating a linear programming model used to determine quantities of order...

Problems solved by technology

This separation can hurt liquidity and information aggregation.
For example, even though horse A is heavily favored to win, that may not directly boost the horse's odds to show.
Furthermore, existing horse-betting mechanisms restrict what participants can bet on.
Unfortunately, the more restrictive the betting mechanism may be for placing wagers, the less refined the information may be that the market can possibly aggregate.
However, supporting bidders to explicitly list the orderings that they would like to bet on may be both unnatural and ...

Method used

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Examples

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Embodiment Construction

Exemplary Operating Environment

[0016]FIG. 1 illustrates suitable components in an exemplary embodiment of a general purpose computing system. The exemplary embodiment is only one example of suitable components and is not intended to suggest any limitation as to the scope of use or functionality of the invention. Neither should the configuration of components be interpreted as having any dependency or requirement relating to any one or combination of components illustrated in the exemplary embodiment of a computer system. The invention may be operational with numerous other general purpose or special purpose computing system environments or configurations.

[0017]The invention may be described in the general context of computer-executable instructions, such as program modules, being executed by a computer. Generally, program modules include routines, programs, objects, components, data structures, and so forth, which perform particular tasks or implement particular abstract data types....

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Abstract

An improved system and method is provided for permutation betting. To do so, a permutation betting engine may be provided for providing services to support betting on an outcome resulting in an ordinal ranking of objects. Orders specifying a property of an ordering of one or more positions of an object in an ordinal ranking of objects may be received. The quantities for orders to accept may be determined, a response may be sent to traders indicating the quantities of orders for payment, and the amount owed for accepted orders may be collected. Winning accepted orders may be identified and payout may be made for winning accepted orders. Advantageously, the present invention may provide a framework for efficiently optimizing an auctioneer's objective using linear programming for a prediction market where the outcomes of interested events are ordered statistics.

Description

FIELD OF THE INVENTION[0001]The invention relates generally to computer systems, and more particularly to an improved system and method for permutation betting.BACKGROUND OF THE INVENTION[0002]In a permutation betting scenario, traders may wager on the final ordering of several competing candidates: for example, the outcome of a horse race. In a typical horse race, traders may bet on properties of the outcome like “horse A will win”, “horse A will show, or finish in either first or second place”, or “horses A and B will finish in first and second place, respectively”. In practice at the racetrack, each of these different types of bets are processed in separate pools or groups. In other words, all the “win” bets are processed together, and all the “show” bets are processed together, but the bets specifying different properties of the outcome are not processed together in the same pool. This separation can hurt liquidity and information aggregation. For example, even though horse A is...

Claims

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Application Information

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IPC IPC(8): A63F9/24
CPCG07F17/32
Inventor CHEN, YILINGNIKOLOVA, EVDOKIA VELINOVAPENNOCK, DAVID MYER
Owner OATH INC
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