But theres bad
news the games are not your garden variety ones and therefore the discovery is not
so useful in the casino.
But the good news is that the researchers are now
working on ways to apply their mathematical theory to the economy.
"It could help to answer financial questions
such as finding the best strategy for combining high-risk shares and cash reserves in
managing an investment portfolio," Dr Abbott said.
The theory a1so cou1d be used to help understand
genetic development by analysing the "good" and "bad" genes in a pool
of genes in an animal population.
"Considering probabilities that certain genes
may become expressed in each generation is rather like a gambling game," Dr Abbott
"Some bad genes may become beneficial if there
is a change in the environment."
Dr Abbott said a Parrondian viewpoint could be
applied to the dynamics of voting for instance, does a touch of scandal increase a
"One of the messages of Parrondos paradox
is that a little bit of badness is good," he said.
[The Age, 6-1-00, page 4]