Parrando’s Paradox

Let’s play this game: game A) You lose a dollar every time you play one game; game B) you lose five dollars if the money at hand is odd and gain three dollars if it’s even. You have 100 bucks at the start of each game; play for 100 games.

Following are the first few results from game A, followed by the plot of the results.

#Money
at hand
start100
199
298
397
1000

So, you are losing everything in 100 plays. Now, the second game: The excel code is: if(isodd(B1), B1-5, B1+3); assuming the starting 100 is in the cell, B1.

#Money
at hand
start100
1103
298
3101
496
1000

Again, you lose everything in 100.

Play two losing games!

We have played two losing games. Now play game B and game A alternatively and see what happens. if(isodd(A2), if(isodd(B1), B1-5, B1+3), B1-1). The game number is in the A column, starting from A2, and money is in the B column, starting from B1.

#Money
at hand
start100
1103
2102
3105
4104
100200

Putting the outcomes of all three games in one place (back represents game A, red represents game B, and the green represents BABA game:

Where is the paradox?

An important thing to notice here is that game A influences game B (and evades the number from being odd before game B starts). The end result becomes counterintuitive, but not a paradox in the strictest sense.

Parrondo’s paradox: Wiki
The Game You Win By Losing (Parrondo’s Paradox): Vsauce2