Penney's Game Odds From No-Arbitrage (opens in new tab)

arXiv:1904.09888v3 Announce Type: replace-cross Abstract: Penney's game is a two-player zero-sum game in which each player chooses a three-flip pattern of heads and tails, and the winner is the player whose pattern occurs first in repeated tosses of a fair coin. Because the players choose sequentially, the second mover has the advantage. In fact, for any three-flip pattern, there is another three-flip pattern that is strictly more likely to occur first. This paper provides a novel no-arbitrag...