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Pot Odds and Expected Value

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  • Pot Odds and Expected Value

    In Cash Game Course I do not understand why do they not factor in the sunk cost.

    If I already commit large value on pre-flop betting then should you not calculate that in my pot odds?

    For example the villain is very aggressive on his pre-flop betting and I called. Let's say the pot is $200 and my equity inside the pot is $80.

    After flop the villain bet $70. The pot odd becomes 4:1 (=360: 90) The odds of my winning is 4:1 as I aim for my flush draw. Therefore I should be indifferent whether I bet or not.

    However if I add my early betting of $80 then my pot odd becomes 2.1:1=(360:170). I have to look this into long term and no matter how I see it the course teaching does not make sense. If I do not calculate my overall investment, I feel like I will lose the money. When I follow it's teaching, I am neglecting my $80 investment and lose that value. Can anyone explain me how I am misunderstanding this?

  • #2
    Now that I am rethinking about this. This is a dumb question because you always want to look at your current state. No matter what is your sunken cost, you will have to follow the correct decision which is bet whenever the winning odds are higher than pot odds. That way you can minimize your sunken cost or recover what could been lost.

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