Dutch Book
How can Dutch book be demonstrated on a concrete example?
Dutch book bets is such a strategy, which is called by the player and in which this player is guaranteed to receive a loss regardless of the specific outcome of the sporting event.
- Go to a bookmaker and place your bets right now.
Imagine a horse race in which 4 horses take part. The victory of the first horse is rated as 1 to 1, the second horse’s victory is rated 3 to 4, the third horse’s victory is rated 4 to 1 and the fourth horse’s victory is rated 9 to 1. The player bets 100 dollars on the first horse to get the same 100 dollars Prize money. On the second horse, he bets 50 dollars to get a clean win of $150. On the third horse, he bets 40 dollars to get winnings of $160. Finally, on the fourth horse, he bets 20 dollars to get a win of 180 dollars. At any outcome of the race, the player thus loses money. This is an example of Dutch book.