System and method for permutation betting
An improved system and method is provided for permutation betting. To do so, a permutation betting engine may be provided for providing services to support betting on an outcome resulting in an ordinal ranking of objects. Orders specifying a property of an ordering of one or more positions of an object in an ordinal ranking of objects may be received. The quantities for orders to accept may be determined, a response may be sent to traders indicating the quantities of orders for payment, and the amount owed for accepted orders may be collected. Winning accepted orders may be identified and payout may be made for winning accepted orders. Advantageously, the present invention may provide a framework for efficiently optimizing an auctioneer's objective using linear programming for a prediction market where the outcomes of interested events are ordered statistics.
1 . A computer system for permutation betting, comprising:
a permutation betting engine for providing services to support betting on an outcome resulting in an ordinal ranking of the objects, the services using a linear programming model to determine quantities of orders to accept; and
a storage operably coupled to the permutation betting engine for storing a plurality of orders, each specifying a property of an ordering of one or more positions of at least one object in the ordinal ranking of the objects.
2 . The system of claim 1 further comprising a model generator operably coupled to the permutation betting engine for creating a linear programming model used to determine quantities of orders to accept.
3 . The system of claim 2 further comprising a linear programming analysis engine operably coupled to the model generator for determining a set of quantities of orders to accept.
4 . A computer-readable medium having computer-executable components comprising the system of claim 1 .
5 . A computer-implemented method for permutation betting, comprising:
receiving from a plurality of traders a plurality of orders specifying a property of an ordering of one or more positions of at least one object in an ordinal ranking of a plurality of objects;
determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects;
collecting an amount for the at least one order of the plurality of orders accepted from at least one trader of the plurality of traders;
identifying at least one winning accepted order; and
paying out a winning amount for the at least one winning accepted order.
6 . The method of claim 5 wherein determining to accept the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises determining a quantity of the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects.
7 . The method of claim 6 further comprising sending a response to at least one trader of the plurality of traders indicating the quantity of the at least one order of the plurality of orders placed by the at least one trader of the plurality of traders.
8 . The method of claim 6 wherein determining the quantity of the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises creating a linear programming model for determining an optimal set of one or more quantities of orders of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects.
9 . The method of claim 6 wherein determining the quantity of the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises solving a linear programming model for determining an optimal set of one or more quantities of orders of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects.
10 . The method of claim 9 wherein solving the linear programming model for determining the optimal set of the one or more quantities of orders of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises solving the linear programming model for determining the optimal set of the one or more quantities of orders of the plurality of orders for maximizing a worst-case profit of an auctioneer.
11 . The method of claim 6 wherein determining the quantity of the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises creating a system of linear inequalities for finding a subset of the plurality of orders providing a nonnegative profit to an auctioneer for possible outcomes of the ordering in the ordinal ranking.
12 . The method of claim 6 wherein determining the quantity of the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises solving a system of linear inequalities for finding a subset of the plurality of orders providing a nonnegative profit to an auctioneer for possible outcomes of the ordering in the ordinal ranking.
13 . The method of claim 5 wherein determining to accept the at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises determining to accept at least one divisible order of the plurality of orders.
14 . The method of claim 5 wherein specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises using a logical statement to specify the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects.
15 . The A computer-readable medium having computer-executable instructions for performing the method of claim 5 .
16 . A computer system for permutation betting, comprising:
means for receiving from a plurality of traders a plurality of orders specifying a property of an ordering of one or more positions of at least one object in an ordinal ranking of a plurality of objects;
means for determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects;
means for collecting an amount for the at least one order of the plurality of orders accepted from at least one trader of the plurality of traders; and
means for paying out a winning amount for the at least one winning accepted order.
17 . The computer system of claim 16 wherein means for determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises means for determining a quantity of the at least one order of the plurality of orders.
18 . The computer system of claim 16 wherein means for determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises means for determining an optimal set of the one or more quantities of orders of the plurality of orders for maximizing a worst-case profit of an auctioneer.
19 . The computer system of claim 16 wherein means for determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises means for finding a subset of the plurality of orders providing a nonnegative profit to an auctioneer for possible outcomes of the ordering in the ordinal ranking.
20 . The computer system of claim 16 wherein means for determining to accept at least one order of the plurality of orders specifying the property of the ordering of the one or more positions of the at least one object in the ordinal ranking of the plurality of objects comprises means for determining to accept at least one divisible order of the plurality of orders.