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Winners Are Losers in Online Poker Games

Winners Are Losers in Online Poker GamesA study of online poker discovers a counterintuitive relationship: The more hands players win, the less money they’re likely to collect.

The good luck, or perhaps “tease,” entices individuals to continue to play only to be hit hard with occasional, although significant losses.

Cornell sociology doctoral student Kyle Siler analyzed over 27 million online poker players. He believes the actions “coincide with observations in behavioral economics that people overweigh their frequent small gains vis-à-vis occasional large losses, and vice versa.”

In other words, players feel positively reinforced by their streak of wins but have difficulty fully understanding how their occasional large losses offset their gains.

The study, which was published online in December in the Journal of Gambling Studies and will be published in a forthcoming print edition later this year, also found that for small-stakes players, small pairs (from twos to sevens) were actually more valuable than medium pairs (eights through jacks).

“This is because small pairs have a less ambiguous value, and medium pairs are better hands but have more ambiguous values that small-stakes players apparently have trouble understanding,” said Siler, a long-time poker player himself.

Siler used the software PokerTracker to upload and analyze small-stakes, medium-stakes and high-stakes hands of No-Limit Texas Hold’em with six seats at the table. The game has simple rules and “any single hand can involve players risking their entire stack of chips,” Siler said.

The research not only examined the “strategic demography” of poker at different levels of stakes and the various payoffs associated with different strategies at varying levels of play, but also “speaks to how humans handle risk and uncertainty,” said Siler, whose look at online poker combines aspects of behavioral economics, economic sociology and social science theory.

“Riskiness may be profitable, especially in higher-stakes games, but it also increases the variance and uncertainty in payoffs. Living one’s life, calibrating multiple strategies and managing a bankroll is particularly challenging when enduring wild and erratic swings in short-term luck and results.”

In online poker, a multibillion dollar industry, Siler concluded that the biggest opponent for many players may be themselves, “given the challenges of optimizing one’s mindset and strategies, both in the card game and the meta-games of psychology, rationality and socio-economic arbitrage which hover beneath it,” he said.

Source: Cornell University

Winners Are Losers in Online Poker Games

Rick Nauert PhD

Rick Nauert, PhDDr. Rick Nauert has over 25 years experience in clinical, administrative and academic healthcare. He is currently an associate professor for Rocky Mountain University of Health Professionals doctoral program in health promotion and wellness. Dr. Nauert began his career as a clinical physical therapist and served as a regional manager for a publicly traded multidisciplinary rehabilitation agency for 12 years. He has masters degrees in health-fitness management and healthcare administration and a doctoral degree from The University of Texas at Austin focused on health care informatics, health administration, health education and health policy. His research efforts included the area of telehealth with a specialty in disease management.

APA Reference
Nauert PhD, R. (2015). Winners Are Losers in Online Poker Games. Psych Central. Retrieved on July 21, 2018, from https://psychcentral.com/news/2010/01/13/winners-are-losers-in-online-poker-games/10723.html

 

Scientifically Reviewed
Last updated: 6 Oct 2015
Last reviewed: By John M. Grohol, Psy.D. on 6 Oct 2015
Published on PsychCentral.com. All rights reserved.