Payout Structure (for math types)

[Scuba Chuck]

I've read that due to the payout structure, you should change your risk aversion during play. For example, if in a SNG, only first place pays, it could be right to take part in more coinflips early on.

Is there some math behind this?

[Khern]

From TPFAP, pg19 "But there is another reason to eschew close gambles, even early on. This reason has nothing to do with the prize structure, and is something you should be aware of even if the tourneyment paidonly one winner. What I am speaking of involves the rpesumption that you are one of the best players in the tournament..."

Math follows on pg20. I take the time to post this because I have(until just now) confused the strategies altered by payout structure, and this willingness to avoid gambles. Thanks for asking the question and forcing me to look it up.

-John

[rachelwxm]

For games that only first place pay, chipEV=EV all times. You don't get benefit for waiting people bust out. While you could fold every hand in regular payout SNGs if you believe 8 people would drop out before you do, there is no such thing for games that pay first.