A few columns ago, I mentioned that I was reading Nobel Prize Winner Daniel Kahneman’s book Thinking, Fast and Slow. Although today’s column was inspired by that book, I’m extrapolating some of Kahneman’s arguments into areas that weren’t discussed in his writing. That is always risky business — especially since this is not my field of expertise. When I was studying Economics forty years ago, Kahneman wasn’t required reading. (Now he is, at least in some schools.) Nevertheless, let’s see what happens.
Continue reading The Endowment Effect in Video Poker
Category: Video Poker
Casinos Have All The Advantages
One of the nicest things about hosting a radio show that finishes at 8 p.m. is that afterwards the guests and hosts can often go out and enjoy a drink or meal together. Almost always our guests have been bright and interesting people who usually specialize in a form of advantage gambling that is different from what I do. I usually learn something and have a good time while doing it. Continue reading Casinos Have All The Advantages
A Wonderful Phrase
I enjoy words and clever ways of saying things. Back when I was younger, I was known as something of a smart ass — often making observations out loud. Sometimes witty. Sometimes, not so much. Many of my friends know that I haven’t completely outgrown my younger days.
Continue reading A Wonderful Phrase
The Secret to Success
I was reading Thinking, Fast and Slow by Daniel Kahneman, Nobel Prize winner in Economics. The part of the book that inspired this article was called “Regression to the Mean.” In this chapter, Kahneman recalled something he submitted when he was one of several scientists requested to report their “favorite equation.” Kahneman reported:
Success = Talent + Luck
Great Success = A Little More Talent + A Lot of Luck Continue reading The Secret to Success
Apples and Oranges
In March, the Palms is giving away a 2013 Volkswagen Jetta every Saturday — along with other cash prizes. At the start of the month, I figured I’d play to earn entries for the car drawings on Saturday the 16th and Saturday the 30th. The weeks chosen were somewhat arbitrary and partly determined by other things that were going on in my world during the month.
For this type of drawing, you earn virtual entries based on your play. Different denomination machines earn entries at different rates and slots earn more tickets per coin-in than video poker. In addition, on Fridays and Saturdays between 8 p.m. and midnight, your play will generate 3x drawing entries. Continue reading Apples and Oranges
There Should Be a Limit
I recently played during a promotion at Planet Hollywood. Someone I didn’t recognize came up, told me his name was “John,” and stated that he’d purchased Video Poker for Winners during a class of mine several years ago. He said he’d learned a lot from it.
I try to be polite and talk with any player who recognizes me and comes up to say hi. I shook John’s proffered hand and agreed that yes, the program is very helpful, and that using it can save a player many thousands of dollars. John then went away. Continue reading There Should Be a Limit
Keeping Focus
There’s a book entitled The Invisible Gorilla by Christopher Chabris and Daniel Simons which explains, in part, how our perceptions and decisions can be distorted when our attention is not properly focused on the correct action or event. The authors created a film in which players with white shorts and players with black shorts passed basketballs to each other. Continue reading Keeping Focus
Changing Expectations
As you know, I’m primarily a video poker player, but I have played table games at the Palms often enough that I sometimes get mailers for their table games. For February, they sent me four “First Card is an Ace” coupons — one useable each week.
In blackjack, an ace as a first card is worth something like 57% of your bet. The exact percentage depends on the rules and the accuracy of your play, but for today’s article, 57% is close enough. The coupons need to be used on a 6-deck shoe game and I can bet anywhere from $10 to $100 with the coupons. Continue reading Changing Expectations
Losing $1 Billion at Video Poker — NOT
There’s a scandal involving former San Diego mayor Maureen O’Connor in which it was reported that she lost one billion dollars playing video poker. The U-T San Diego headline reads “How to lose $1 billion in video poker.” The problem is, however, that this never happened. It might be a clever headline designed to sell a lot of newspapers, but it is a grossly exaggerated number. Continue reading Losing $1 Billion at Video Poker — NOT
Induction versus Deduction
Different people use different types of logic. I try to use “deduction,” whereby I learn the general rule and then apply that to specific situations. A friend of mine, Abe, uses “induction,” which is to look at specific events and then form a general rule that these events will usually reoccur in similar situations. Continue reading Induction versus Deduction