Prize and Risk-Taking Strategy in Tournaments: Evidence from Professional Poker Players
نویسنده
چکیده
Prize and Risk-Taking Strategy in Tournaments: Evidence from Professional Poker Players This study examines whether people optimally respond to prize incentives for risk taking in tournaments. I exploit the television game show World Poker Tour as a natural experiment. The results show that professional players strategically choose the degree of risk taking depending on the incentives implied by the prize structure they face. I find that they are more sensitive to losses than to gains. JEL Classification: M5, D8
منابع مشابه
Frank Mueller-Langer; Patrick Andreoli-Versbach: Leading-effect vs. Risk-taking in Dynamic Tournaments: Evidence from a Real-life Randomized Experiment
Two order e¤ectsmay emerge in dynamic tournaments with information feedback. First, participants adjust e¤ort across stages, which could advantage the leading participant who faces a larger e¤ective prizeafter an initial victory (leading-e¤ect). Second, participants lagging behind may increase risk at the nal stage as they have nothing to lose(risk-taking). We use a randomized natural ex...
متن کاملThe Role of Skill versus Luck in Poker: Evidence from the World Series of Poker
In determining the legality of online poker – a multibillion dollar industry -courts have relied heavily on the issue of whether or not poker is a game of skill. Using newly available data, we analyze that question by examining the performance in the 2010 World Series of Poker of a group of poker players identified as being highly skilled prior to the start of the events. Those players identifi...
متن کاملTournaments, Risk Taking, and the Role of Carrots and Sticks
We study a Lazear-Rosen tournament in which players choose both work effort, which determines the mean of their output distribution, and the variance of output. The variance can be increased above its natural level but it is costly to do so. We show that tournaments involving more than two players generate incentives for risk-neutral players to pursue high-risk projects. However, the incorporat...
متن کاملGive us our daily protein
Artificial intelligence masters poker Computers can beat humans at games as complex as chess or go. In these and similar games, both players have access to the same information, as displayed on the board. Although computers have the ultimate poker face, it has been tricky to teach them to be good at poker, where players cannot see their opponents’ cards. Moravčík et al. built a code dubbed Deep...
متن کاملOpponent Modeling in Poker
In recent years much progress has been made on computer gameplay in games of complete information such as chess and go. Computers have surpassed the ability of top chess players and are well on their way to doing so at Go. Games of incomplete information, on the other hand, are far less studied. Despite significant financial incentives, computerized poker players still perform at a level well b...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2004