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arXiv · 0911.3100

The Independent Chip Model and Risk Aversion

George T. Gilbert
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Abstract

We consider the Independent Chip Model (ICM) for expected value in poker tournaments. Our first result is that participating in a fair bet with one other player will always lower one's expected value under this model. Our second result is that the expected value for players not participating in a fair bet between two players always increases. We show that neither result necessarily holds for a fair bet among three or more players.

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George T. Gilbert. 2009-11-16. The Independent Chip Model and Risk Aversion. https://arxiv.org/abs/0911.3100

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