Posts Tagged ‘poker’
Chess as a game (among many)
Chess is often called “the queen of games”, at least in Western culture. The game’s austere appearance, when combined with its tactical and strategic depth, provides an air of challenge and mystery.
In many ways, chess is the prototypical Western game. Strategies and tactics are direct, with little progress to be made unless you directly confront your opponent. Chess is also a perfect information game, meaning there is no element of chance. You might not know your opponent’s next move, but there’s nothing hiding it from you. If you didn’t see what was coming, you can only blame yourself.
Although chess has increased in popularity in Asia, the traditional strategy game of Japan, China, and South Korea is go. Unlike chess, where the goal is to create a position where your opponent’s king is under attack and cannot move to a safe square, go players place their stones in an attempt to surround territory on the board. Chess boards are 8 x 8, with 64 squares, and the pieces stand on the squares. In go, the board has 19 x 19 lines, with 361 intersections, and players may place a stone on any unoccupied intersection (with a few exceptions).
The complexity of go far outstrips that of chess, at least in terms of the computation required to analyze and evaluate a position. Computers have conquered humans at chess…their calculating speed and positional evaluation let them beat even the strongest carbon-based players regularly. The most advanced go programs can only beat top professionals if they are given a substantial head start. That said, the gap is closing.
I said that chess is the prototypical Western game, but it’s mostly thought of as a European (and even more specifically, Russian) game. In America, the game of choice is poker. Poker is a gambling game, with a significant element of chance involved. You can do everything right but still lose if your opponent decides to fight the odds and draws the cards they need. Ironically, the better you play, the more of these “bad beat” stories you’ll have to tell. If you’re always in the lead, the luck of the draw means you will get chased down on occasion.
I hope I don’t sound bitter. But I am.
Do the Russians play chess, the Chinese play go, and the Americans play poker? If you look at our cultures and practices, you’ll see there’s a fair amount of truth to that statement. How well that metaphor translates to actionable intelligence is debatable, but it’s an interesting way to start a conversation.
Spend a Five or Break a Twenty? The Denomination Effect
I’m sure many of us understand the denomination effect on a visceral level. If you’ve ever been in a store, saw something you wanted, but hesitated to buy it because you’d have to pull out a big bill, you’ve experienced this effect. Why did you hesitate? Because you knew that breaking that $20, $50 or $100 bill made it that much easier to spend your change.
Perhaps that’s why prices near a dollar amount, particularly $4.99, $9.99, $19.99, and $99.99 are so attractive to the consumer’s eye. You’re trading one physical item (a printed piece of paper) for another (perhaps a flash drive) and getting a tiny bit of money back. I wonder how much of the attractiveness of prices just below a currency denomination depends on the fact that you’re getting some change back as opposed to the first number being one less (e.g., $19.99 versus $20.00). I bet the two phenomena are intertwined in some interesting psychological ways.
You also see the denomination effect at work in gambling, but the effect works differently there depending on the game and situation. Knowledgeable poker players experience the reverse effect, becoming less likely to get involved in hands when they have fewer chips in their stack. They hesitate to invest in a hand because, when you are low on funds, the relative value of each chip goes up. Other players can use this hesitancy to their advantage and bet big to drive the small stacks out of a pot, but the small stacks can make a modest bet to induce a bluff raise from a big stack, but the big stacks can raise and hope the small stacks will think they’ve fallen into their trap, but…
You get the idea. Poker’s fun, but bring aspirin.
When You’re “Due” — The Gambler’s Fallacy
I travel to Las Vegas once or twice a year, both to play poker (where I convince myself I have an advantage) and to dabble in other games (where I definitely don’t). Since 1993, when I started playing while on the East Coast, I’ve seen thousands of players succumb to the insidious gambler’s fallacy.
Let’s say you’re playing roulette and notice, as posted on the so very helpful display by the wheel, that five red numbers have come up in a row. Is black due? What about green (0/00)? The answer is neither. Roulette wheels are well-balanced and the little obstacles spread around the wheel, called canoes in casino parlance, make outcomes random enough to be considered independent trials. If red numbers come up five times in a row, the next number will be red 18/38 of the time, black 18/38 of the time, and green 2/38 of the time. Ironically, it’s our human urge to discover patterns that makes the gambler’s fallacy work. The wheel has no memory, but we do.
The bottom line is that when you play roulette, the proportion of red, black, and green numbers will tend toward the target ratios over millions of spins and the weighted payoffs will ensure the house earns its profit over the long run. But what about games like poker? Poker is a skill game with a healthy dose of luck thrown in, so trials aren’t truly independent. Inferior players beat better players over the short term, but only because of luck. But what happens when equal players face off?
It’s hard to find players of the same skill level at a poker table, but I tested the theory by replicating an experiment described by poker author Lou Krieger. Like Lou, I set up ten identical players in Wilson Software’s Turbo Texas Hold’em simulation mode and let them play hundreds of millions of hands against each other. Six of the ten players were just above or below breaking even, but there were two big winners and two big losers. Remember that each player followed an identical strategy — the only factor controlling their fate was the luck of the draw.
As human beings trying to extract a living from an indifferent universe, we must realize that the odds are not always in our favor and that we will go through bad streaks we can’t seem to reverse. At these times it pays to strengthen your base by learning new skills or practicing old ones, reinforcing friendships, reaching out to others for help, and offering assistance where you can. Doing these things doesn’t constitute “good karma” or “putting things out into the universe”, both dubious concepts. What you are doing is improving the chances you’ll be ready to take advantage of opportunities that you and your contacts discover.
Improspectives 