Elo rating system
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Elo rating system

The Elo rating system is a method for calculating the relative skill levels of players in zero-sum games such as chess or esports. It is named after its creator Arpad Elo, a Hungarian-American chess master and physics professor. The Elo system was invented as an improved chess rating system over the previously used Harkness rating system, but it is also used as a rating system in association football (soccer), American football, baseball, basketball, pool, various board games and esports, and more recently large language models.

The difference in the ratings between two players serves as a predictor of the outcome of a match. Two players with equal ratings who play against each other are expected to score an equal number of wins. A player whose rating is 100 points greater than their opponent's is expected to score 64%; if the difference is 200 points, then the expected score for the stronger player is 76%.

A player's Elo rating is a number that may change depending on the outcome of rated games played. After every game, the winning player takes points from the losing one. The difference between the ratings of the winner and loser determines the total number of points gained or lost after a game. If the higher-rated player wins, only a few rating points (or even a fraction of a rating point) will be taken from the lower-rated player; however, if the lower-rated player scores an upset win, many rating points will be transferred. The lower-rated player will also gain a few points from the higher-rated player in the event of a draw. This means that this rating system is self-correcting. In the long run, players whose ratings are too low or too high should do better or worse, respectively, than the rating system predicts and thus gain or lose rating points until the ratings reflect their true playing strength.

Elo ratings are comparative only and are valid only within the rating pool in which they were calculated, rather than being an absolute measure of a player's strength. While Elo-like systems are widely used in two-player settings, variations have also been applied to multiplayer competitions.

Arpad Elo was a chess master and an active participant in the United States Chess Federation (USCF) from its founding in 1939. The USCF used a numerical ratings system devised by Kenneth Harkness to enable members to track their individual progress in terms other than tournament wins and losses. The Harkness system was reasonably fair,[according to whom?] but in some circumstances gave rise to ratings many observers considered inaccurate. On behalf of the USCF, Elo devised a new system with a more sound[clarification needed] statistical basis. At about the same time, György Karoly and Roger Cook independently developed a system based on the same principles for the New South Wales Chess Association.

Elo's system replaced earlier systems of competitive rewards with one based on statistical estimation. Rating systems for many sports award points in accordance with subjective evaluations of the 'greatness' of certain achievements. For example, winning an important golf tournament might be worth an arbitrarily chosen five times as many points as winning a lesser tournament. A statistical endeavor, by contrast, uses a model that relates the game results to underlying variables representing the ability of each player.

Elo's central assumption was that the chess performance of each player in each game is a normally distributed random variable. Although a player might perform significantly better or worse from one game to the next, Elo assumed that the mean value of the performances of any given player changes only slowly over time. Elo thought of a player's true skill as the mean of that player's performance random variable. A further assumption is necessary because chess performance in the above sense is still not measurable. One cannot look at a sequence of moves and derive a number to represent that player's skill. Performance can only be inferred from wins, draws, and losses. Therefore, a player who wins a game is assumed to have performed at a higher level than the opponent for that game. Conversely, a losing player is assumed to have performed at a lower level. If the game ends in a draw, the two players are assumed to have performed at nearly the same level.

Elo did not specify exactly how close two performances ought to be to result in a draw as opposed to a win or loss. Actually, there is a probability of a draw that is dependent on the performance differential, so this latter is more of a confidence interval than any deterministic frontier. And while he thought it was likely that players might have different standard deviations to their performances, he made a simplifying assumption to the contrary. To simplify computation even further, Elo proposed a straightforward method of estimating the variables in his model (i.e., the true skill of each player). One could calculate relatively easily from tables how many games players would be expected to win based on comparisons of their ratings to those of their opponents. The ratings of a player who won more games than expected would be adjusted upward, while those of a player who won fewer than expected would be adjusted downward. Moreover, that adjustment was to be in linear proportion to the number of wins by which the player had exceeded or fallen short of their expected number.

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