Previous studies in dynamic programming have looked at the capital-consumption relationship. In this paper we will expand on such a basic model to include stochastic investment returns and government taxation. The conclusion is that taxation has a stabilizing effect on the optimal consumption...

This paper will present a simple coin toss model which will illustrate the effect of collusion and its impact on the expected payoff for any given player. Such a game has direct links to community investment clubs where people are aggregating their investments. Without any knowledge about the...

Many different studies such as Kelly (1956) have an analyzed the characteristics of log-return investment models. We will in this paper discuss such models both from a theoretical and empirical perspective. We show by estimating the kernel density function for empirical data that the optimal bet...