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quotes from The Intelligent Ga

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  • quotes from The Intelligent Ga

    The Intelligent Gambler

    The entire article is too long for a post, but I have selected a few paragraphs from Rachel Croson's article published by ConJel Co LLC in their latest issue of The Intelligent Gambler. Rachel Croson is an Associate Professor at the Wharton School, University of Pennsylvania. She has done extensive studies of the psychological aspect of gambling, and yes, she also gambles. The following paragraphs are direct quotes:

    In this column I will be discussing this and similar biases that have the potential to affect how individuals gamble. These biases are not universal (not everyone exhibits them), and not all of them affect every decision one might make in a casino. Nonetheless, I hope this column will provide an overview of the findings in this area.

    Sunk cost bias: this bias describes how we think about money that is spent, gone and not recoverable (sunk). Rationally, since the money is gone it should not impact any current decision you have to make. However, in practice, people "chase" sunk costs; they spend more money to try to recover their past investment (throwing good money after bad). This bias is especially prevalent in poker; after calling a bet, the pot is raised behind the player. Even though the pot odds don't justify a call, individuals often do call because they're too invested to quit.

    House money: the house money effect is one every gambler has faced; people are willing to take greater risks with money they have recently won than they are with "their own" money. May people in casinos go so far as to keep their money in two separate pockets: their money and the house's money, even thgough the house's money now belongs to the gambler. It is also an example of mental accounting - the two moneys are mentally kept in separate accounts .

    Critically observing your own behavior and taking measures to de-bias your beliefs will make you a more intelligent gambler. Much of the current (good) advice for gamblers helps in this endeavor; for example, keeping an accurate record of your wins and losses can help avoid motivational biases, and a disciplined calculation of pot odds can help overcome the sunk cost effect.

  • #2
    Noodles, are you reading this?!

    sunk cost bias.........pot commited


    I rest my case

    CLAY

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    • #3
      Even though the pot odds don't justify a call, individuals often do call because they're too invested to quit
      the post was made on LIMIT holdem and when pot commited means your getting the odds

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      • #4
        Wasn't Dr. Croson and the Wharton school the ones who put forth that survey form here at the school several months ago?

        --Greagar

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