Kelly betting can be viewed as a way of respecting different possible versions of yourself with different beliefs, rather than just a mathematical optimization. This perspective provides some insight into why fractional Kelly betting (betting less aggressively) can make sense, and connects to ideas about bargaining between different parts of yourself.
Kelly betting can be viewed as a way of respecting different possible versions of yourself with different beliefs, rather than just a mathematical optimization. This perspective provides some insight into why fractional Kelly betting (betting less aggressively) can make sense, and connects to ideas about bargaining between different parts of yourself.