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Practical Poker Math

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1. Introduction to<br />

Game Theory in <strong>Poker</strong><br />

Game Theory — A Historical Perspective<br />

Some believe that the study of Game Theory began with the<br />

works of Daniel Bernoulli. A mathematician born in 1700,<br />

Bernoulli is probably best known for his work with the properties<br />

and relationships of pressure, density, velocity and fluid<br />

flow. Known as “Bernoulli’s Principle,” this work forms the<br />

basis of jet engine production and operation today. Pressured<br />

by his father to enter the world of commerce, he is also credited<br />

with introducing the concepts of expected utility and<br />

diminishing returns. This work in particular can be of use<br />

when “pricing” bets or bluffs in no-limit poker.<br />

Others believe the first real mathematical tool to become<br />

available to game theorists was “Bayes’ Theorem,” published<br />

posthumously in England in the 18th century. Thomas Bayes<br />

was born in 1702 and was an ordained minister. His work<br />

involved using probabilities as a basis for logical inference.<br />

(The author has developed and used artificially intelligent<br />

systems based on “Bayes’ Theorem” to trade derivatives in<br />

today’s financial markets.)<br />

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