• Journal of the Korean Data and Information Science Society
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• v.25 no.4
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• pp.745-753
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• 2014

Parrondo paradox is the counter-intuitive situation where individually losing games can combine to win or individually winning games can combine to lose. In this paper, we compare the history-dependent Parrondo games and the space-dependent Parrondo games played cooperatively by the multiple players. We show that there is a probability region where the history-dependent Parrondo game is a losing game whereas the space-dependent Parrondo game is a winning game.

• The Korean Journal of Applied Statistics
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• v.25 no.4
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• pp.543-552
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• 2012

Parrondo paradox is a counter-intuitive phenomenon where two losing games can be combined to win or two winning games can be combined to lose. When we trade stocks with a history-dependent Parrondo game rule (where we buy and sell stocks based on recent investment outcomes) we found Parrondo paradox in stock trading. Using stock data of the KRX from 2008 to 2010, we analyzed the Parrondo paradoxical cases in the Korean stock market.

• Journal of the Korean Data and Information Science Society
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• v.23 no.5
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• pp.867-880
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• 2012

Parrondo paradox is the counter-intuitive situation where individually losing games can combine to win or individually winning games can combine to lose. In this paper, we derive the expected profit per trade for each portfolio when we trade stocks everyday under the spatially dependent Parrondo game rule. Using stock data of KRX (Korea Exchange) from 2008 to 2010, we show that Parrondo paradox exists in the stock trading.

• Journal of the Korean Data and Information Science Society
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• v.20 no.6
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• pp.973-982
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• 2009

Two losing games that can be combined, either by periodic alternation or by random mixture, to form a winning game are known as Parrondo games. We consider a collective version of Parrondo games in which players are allowed to choose the game to be played by the whole ensemble in each turn. In this paper, we analyze the long-range optimization strategy for all choices of the parameters and find the expected average profit in the steady state.

• Journal of the Korean Data and Information Science Society
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• v.26 no.1
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• pp.77-87
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• 2015

Parrondo paradox is the counter-intuitive phenomenon where two losing games can be combined to win or two winning games can be combined to lose. In this paper, we consider an ensemble of players, one of whom is chosen randomly to play game A' or game B. In game A', the randomly chosen player transfers one unit of his capital to another randomly selected player. In game B, the player plays the history-dependent Parrondo game in which the winning probability of the present trial depends on the results of the last two trials in the past. We show that Parrondo paradox exists in this redistribution model of the history-dependent Parrondo game.

• Journal of the Korean Data and Information Science Society
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• v.27 no.1
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• pp.121-130
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• 2016

An ansemble of N players arranged in a circle play a spatially dependent Parrondo game B. One player is randomly selected to play game B, which is based on the toss of a biased coin, with the amount of the bias depending on states of the selected player's two nearest neighbors. The player wins one unit with heads and loses one unit with tails. In game A' the randomly chosen player transfers one unit of capital to another player who is randomly chosen among N - 1 players. Game A' is fair with respect to the ensemble's total profit. The games are said to exhibit the Parrondo effect if game B is losing and the random mixture game C is winning and the reverse-Parrondo effect if game B is winning and the random mixture game C is losing. We compute the exact mean profits for games B and C by applying a state space reduction method with lumped Markov chains and we sketch the Parrondo and reverse-Parrondo regions for $3{\leq}N{\leq}6$.

• Journal of the Korean Data and Information Science Society
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• v.22 no.4
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• pp.631-641
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• 2011

We consider a history-dependent Parrondo game in which the winning probability of the present trial depends on the results of the last two trials in the past. When a fraction of an infinite number of players are allowed to choose between two fair Parrondo games at each turn, we compare the blind strategy such as a random sequence of choices with the short-range optimization strategy. In this paper, we show that the random sequence of choices yields a steady increase of average profit. However, if we choose the game that gives the higher expected profit at each turn, surprisingly we are not supposed to get a long-run positive profit for some parameter values.

• Journal of the Korean Data and Information Science Society
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• v.26 no.4
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• pp.781-790
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• 2015

The Parrondo paradox is the counter-intuitive phenomenon: when we combine two losing games we can win the game or when we combine two winning games we can lose the game. In this paper, we assume that an investor adopts the rule of the history-dependent Parrondo game for investment in the stock market. Using the KRX (Korea Exchange) data from 2012 to 2014, we found the Parrondo paradox in the stock trading: the redistribution of profits among accounts can turn the decrease of the expected cumulative profit into the increase of the expected cumulative profit. We also found that the opposite case, namely the reverse Parrondo effect, can happen in the stock trading.