Fair game

A game is “fair” when neither of the two contenders is favoured. The expected value provides the precise criterion for deciding this.

Definition — Fair game

A game is said to be fair (or “zero-sum” for the player) if $\bar V = 0$. In that case there is no systematic advantage either for the house or for the player. When $\bar V<0$ the player loses on average (and the house secures a margin); when $\bar V>0$ the player wins on average (a situation that betting houses avoid).

Links

Topics: Probability
Concepts: Fair game · Expected value
Methods: Fair game
Skills: Probability calculation