THE VALUE OF INFORMATION – GAMBLING

7 Mar

In today’s blog I am going to outline the value of information to gamblers.

As I have already mentioned in my previous posts, the value of information can be best described as the maximum price one should pay for knowing the actual value of an uncertainty before deciding on a course of action (business-dictionary.com).

In gambling terms, this simply means the value one would place on the cost of information before placing a bet. As other bloggers have mentioned the characteristics of good information are as follows:

-Accurate  – Timely – Relevant – Sufficient – Worth its cost.  All these characteristics are vital for gamblers. Take for example the sport of horse racing which has a big gambling culture associated with it. Gamblers try to find the best possible price from the bookmakers, so this may require shopping around any weighing up your options. However before the bet is placed the gambler will have many sources of information at his disposal. First of all the odds of the horse will be the bookmakers guide to the horses chances of winning the race. In the bookmakers view a horse with a price of 2/1 has a much better chance of winning then a 10/1 horse. The bookmakers make these odds to minimize their losses but yet take enough of a risk to allow the gamblers to have a bet. The bookmakers calculate these odds using information about the horses form (recent results), breeding (has the horse good genes) and also talk on how the horse is performing in training  This information will be gathered for every horse and both the bookmaker and the gambler will have access to this information, all though some information can be expensive to come by. 

leue-holger-seamus-mulvaney-bookmakers-galway-horseraces-ireland

The gambler has to ask himself is the information he is receiving meeting the criteria of good information which I have outlined above. If you don’t expect to change your decision after receiving this information, or you think that the expected value of the information (the chance you change your decision times the relative value of the decisions) is lower than the cost of the information, then it may be a waste of time conducting the research of the information.

Thanks🙂

References: http://www.businessdictionary.com/definition/value-of-information.html

                         http://lesswrong.com/lw/85x/value_of_information_four_examples/

6 Responses to “THE VALUE OF INFORMATION – GAMBLING”

  1. sad112540853 March 8, 2013 at 12:50 am #

    This caught my eye, it was very interesting and i like how you related it to gamblers😀 Information is so important, but what is more important is do people use the information they get in the right way😀 I really enjoyed this blog😀

  2. sad111708665 March 8, 2013 at 7:51 pm #

    …i never though about this before, u know🙂 of course gamblers would need reliable, swift and effective networks to relay information…unique perspective in a blog and thanks for that

  3. sad109417338 March 10, 2013 at 1:37 pm #

    Intersting take on how important information is for everyone not just for businesses.

  4. sad111510923 March 10, 2013 at 3:28 pm #

    This post was a breath of fresh air. I was starting to get bored reading all about businesses but you approached the ‘value of information’ in a different way. Very unique blog🙂
    It is no wonder that Paddy Power’s and the likes are so successful with the amount of effort they put into their research. Good man Morrison🙂

  5. sad111512527 March 10, 2013 at 7:33 pm #

    ya i was thinking the same so decided to blog on something other the business. Thanks for the feedback🙂

  6. sad111408872 March 10, 2013 at 9:16 pm #

    great blog,interesting how you applied the value of information on gambling,something differnet to the majority of other posts

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: