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Old 04-21-2005, 04:21 AM
Daliman Daliman is offline
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Join Date: Sep 2002
Posts: 382
Default Re: Sorta game theory question, I guess.

[ QUOTE ]
I discovered that you are asking a different and more deep question.

When considering what you should do in any game, poker being one example, you should consider the EV of each alternative. If the EV of one strategy is greater than the EV of all the other strategies then that's what you should do 100% of the time. In the case of game theory there is some confusion at times due to the common use of mixed strategies in games. In these games players only use mixed strategies when the payoff to each pure strategy being used in the mix is equal. Otherwise this player would improve by playing whichever strategy yields her the best payoff.

What you are referring to is known as probability matching. It's a terrible strategy but in a lot of experiments subjects have been shown to play something like this. For example, suppose I flip a weighted coin and it comes up heads 75% of the time. If we are flipping the coin and I'm offering you even odds you should always go with heads due to it being +EV but many players will choose heads 75% of the time.

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Ok ,now we're on to what I was talking about. Now, in the instance of the weighted coin, wouldn't be EV work out exactly the same if you found the proper fulcrum,(which is 75%)?

I guess part of what I am also saying is that if you are winning 85% of the time, wouldn't it be sort of axiomatic that if it were strictly an even money bet, you should DO it 85% of the time?

I guess I don't understand WHY not doing it 100% of the time can't be more profitable.
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