Expected UtilityIn poker taking risks or play safe.
All people who play poker are in it for profit and pleasure. All of them wants to win and have fun at the same time. However, not all players bet uniformly because they view the same amount of money differently. This means that some players will put a $200 wager on the line without pondering for too long because they consider it a small amount of money. Meanwhile, some will think twice about doing the same thing because they consider the amount as huge.
With that said, it is now easy to say that risk-takers do not think and act the same way. In poker, this can be explained by the term expected utility. This is the theory that says that the actions made by a particular player are rooted from his own value perception of the prize pot. There are generally three types of risk-takers in poker and they are the following:
Risk-averse: The Scaredy Cat
In a single bet game type, will you risk your million dollars, which is the only money you actually have, to gain another million dollars? The risk-averse type of gamblers are the ones who will refuse to give in to this kind of offer. Even if the wager and the pot are of the same value, the risk-averse people believe that they rather keep the one million than end up broke. The rationale behind this is that they see the million dollars they actually own as more valuable than the million dollars they could possibly gain. This type of people prefers to allot portions of their million dollars to bet in many games rather than lose them all at once. Risk-averse poker players are the most likely persons in the game who will strike or accept a closing deal that can benefit them.
Risk-neutral: The So-So Player
Using the same situation cited above, there are people who will put their one millions dollars on the line because they see the wager and the prize at stake as having the same value. This means that they are willing to sacrifice their money because there is a 50-50 chance of doubling up what they have. Risk-neutral poker players tend to put conditions though before they venture their dollars. Although they are brave enough to bet a big sum of money, they will waive their right to bet if they realized that the probability of winning is actually slim.
Risk-loving: The Absurdly Courageous
The risk-loving poker players are the ones who will sacrifice the one million dollars just because they love to take their passion for the game to the extremes. This means that even if you reduce to 20% the chance of winning the other million dollars, they will gladly take the offer. Risk-lovers do not mind the awful odds as long as they can put their money on the line. Apparently, this show of courageousness is impractical. This is the common mistake of compulsive gamblers with no sense of self-discipline and direction in their poker playing. To avoid becoming one, learn how to strike or accept a deal from your opponent if luck does not seem to be on your side.
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