Re: Is Game Theory Applicable Here?
[img]/images/graemlins/diamond.gif[/img] Game theory is completely irrelevant.
[img]/images/graemlins/diamond.gif[/img] EV makes sense even for events that only happen once. Many people find this counterintuitive.
[img]/images/graemlins/diamond.gif[/img] It is ok to have a nonlinear value for money, which can lead you to being rationally risk averse. If the value you place on having $x is log x, you should accept the the gamble if you have at least $9038.19, and decline if you have less.
[img]/images/graemlins/diamond.gif[/img] "it is not unreasonable to sacrifice $10 in expected value in order to play a game you cannot lose rather than one that you are a huge underdog to win" sounds overly emotional, and does not easily fit into a consistent system for analyzing gambles. Many people are willing to pay for short-term certainty. This is an easily exploited weakness in poker.
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