Game Theory Applied To Poker

Posted on 4/5/2022 by admin

Modern Poker Theory
Game Theory Applied To One Card Poker
Game Theory Applied To Poker
Game Theory Applied To Poker Table

Game Theory with Poker

Game Theory and Poker. John Nash developed game theory as a branch of mathematics at Princeton University around 1950. As poker has become more popular over the last 15 years or so, players have improved dramatically, to the point where it’s very difficult to consistently to beat the game without game theory knowledge in your corner. Game theory is the study of mathematical models of strategic interaction among rational decision-makers. It has applications in all fields of social science, as well as in logic, systems science and computer science.Originally, it addressed zero-sum games, in which each participant's gains or losses are exactly balanced by those of the other participants. The same goes for poker hands. The variance for 100 poker hands in NLH 6max is, say, 10000 (100 squared). To calculate the variance of the sum for 10 thousand hands you have to think how many groups of 100 hands does 10000 have? Well, 10000/100 = 100.

Poker is a wonderful game that involves both luck and skill. What separates poker from the rest of the games at a casino is that, if done correctly, a player can maximize his expected outcome over time if played enough. This of course, involves knowing the game quite well, knowing the probabilities of certain events, both where you win and lose, and simply put knowing when to bluff and fold. A key part about maximizing your profit from your play style is to know what your opponent is doing/thinking. In this sense, Game theory is a tool that can be justifiably applied to playing poker.

In this blog post, I would like to focus on Texas holdem, a game with each player dealt 2 cards, and eventually a five card board shared between players. There are three rounds of betting open (not including pref-lop) open to all players at the table. The trick to poker is to use the every signal/action from other players and use it to your advantage. Based on preflop action of players, you should immediately assign a range to said player. For example, If a player 3-bets (or re-raises) pre-flop, you know he is strong and should put him at the top of his range. This will provide you with more information on what to do when certain cards come out on the flop. If they hit match his range, you may want to stay away from this hand, however if it does not, you can pursue this hand aggressively, regardless of if you have a good hand or not (this is when bluffing comes in as a key factor).

The other part in game theory other than knowing what the other player is thinking, is them knowing if you will make the optimal decision. Believe it or not, according to a pro in an article on game theory (see link at bottom).

“According to the pro:

everybody knows who I am
everybody knows how I play
there’s no reason to get out of line”

Modern Poker Theory

This follows a concept referred to as “Game Theory Optimal” or GTO. The best online player last year was said to followed this strategy, and the thing about online poker is it can be broken down purely to probabilites and signals of players (you take out the option of live reads at a live table). This theory helps you decide when to bet 80% of the time and to call 20% of the time, and then when to call a bet 20% of the time and fold 80% of the time. Unfortunately for humans, bots (which are supposedly being implemented into online gaming sites unknowingly) are much better at learning probabilities, applying GTO with perfect optimal, and taking our money. So unless you took diligent notes in your Game Theory class, make sure to stay away from online poker once bots are introduced.

https://www.pokernews.com/strategy/game-theory-optimal-solutions-and-poker-a-few-thoughts-22654.htm#targetText=GTO%20stands%20for%20%E2%80%9Cgame%20theory,to%20being%20strictly%20results%20oriented.

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Game Theory Applied To One Card Poker