Betting substantitally under full Kelly to me seems like an adaptation to an environment with adversarial information processes occurring. Consider that most of the bets that a person considers would be bets offered by someone who, as evidenced by the fact that they are offering it, has put more thought into the bet than they have. By making a bunch of small bets I am also gathering other information about my environment.
yeah maybe the best framing is fractional kelly is doing 2 things—updating your beliefs based on fact that the market is offering you these odds, then betting full kelly based on your new posterior belief.
Betting substantitally under full Kelly to me seems like an adaptation to an environment with adversarial information processes occurring. Consider that most of the bets that a person considers would be bets offered by someone who, as evidenced by the fact that they are offering it, has put more thought into the bet than they have. By making a bunch of small bets I am also gathering other information about my environment.
yeah maybe the best framing is fractional kelly is doing 2 things—updating your beliefs based on fact that the market is offering you these odds, then betting full kelly based on your new posterior belief.