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Math Help - Relationship between "mark-up" function and payout formula

  1. #1
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    Dunedin New Zealand
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    Relationship between "mark-up" function and payout formula

    Hey guys, I'm a new user here and its my first post, so go easy.

    I am currently starting a small investigation out of my own curiosity.



    It's in regards to the pricing (or mark-up) of a share price. Specifically for a piece of action in a poker player (similar to betting on a horse).

    The method of calculating payouts to share-holders is called "stakeback" here is the formulae:

    Stakeback - Online Poker Staking - ChipMeUp
    (There is also a calculator tool for it)

    I am trying to explore the relationship of this "Mark-Up" and "Stakeback"



    If you need more context I strongly recommend watching this video (THIS IS NOT ADVERTISING, I don't want you to sign up to the site, its just the easiest way for my to explain the scope and context).

    (Please pay closest attention from 2mins onwards)



    Basically my hypothesis goes along the lines of - The feature of being able to add mark-up, is nullified/zero'd if you use the Stakeback payout method.


    So far I've been playing with making certain variables zero, and I've been getting interesting results, I was starting to just run a lot of simulations with it at different mark-ups.

    Assistance is required from someone with good math and logic, and good common sense.
    I can share some of my examples/simulations to help you better understand what I am trying to work out.

    please please HELP!
    Would be best to post here first and then either use PM/EMAIL/SKYPE to communicate, or if someone works it out easy enough they mite be able to just explain it here.
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  2. #2
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    Joined
    Jul 2012
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    Dunedin New Zealand
    Posts
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    Re: Relationship between "mark-up" function and payout formula

    * If this is in wrong section, i am sorry and please move it, thx mods *
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