Poker Player Behavior After Big Wins and Big Losses

  title={Poker Player Behavior After Big Wins and Big Losses},
  author={Gary Smith and Michael Levere and Robert Kurtzman},
  journal={Manag. Sci.},
We find that experienced poker players typically change their style of play after winning or losing a big pot---most notably, playing less cautiously after a big loss, evidently hoping for lucky cards that will erase their loss. This finding is consistent with Kahneman and Tversky's (Kahneman, D., A. Tversky. 1979. Prospect theory: An analysis of decision under risk. Econometrica47(2) 263--292) break-even hypothesis and suggests that when investors incur a large loss, it might be time to take a… 

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