| Article ID: | iaor1990989 |
| Country: | United States |
| Volume: | 20 |
| Issue: | 3 |
| Start Page Number: | 41 |
| End Page Number: | 48 |
| Publication Date: | May 1990 |
| Journal: | Interfaces |
| Authors: | Ziemba William T., Hausch Donald B. |
| Keywords: | recreation & tourism, gaming, game theory |
The folklore of investment is replete with stories of arbitrage opportunities where profits can be made without risk. Such a ‘lock’ exists at the racetrack. A simple model provides a criterion for existence of a set of bets to create the arbitrage plus the size of the various investments.