Re: Classic Type Game Theory Problem
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I came to the conclusion that the ideal strategy for A is to stand pat on all hands where 1.0 - B < A.
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That is part of the optimal strategy in some cases, when b > [sqrt(2)-1], which is around .4142. There, B always draws when A does.
But the interesting cases are when b < [sqrt(2)-1], where it turns out A stands pat when his hand exceeds [1 - sqrt(1-2b)]. This value is above b, so it does contain an element of bluffing. Furthermore, B randomizes between standing and drawing. Use the usual indifference conditions for these cases.
alThor
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