Quote:
Originally Posted by bolt2112
I'm not suggesting that you should tip for the entertainment value (although some people probably do tip for that reason). What I am saying is that EV is a non-factor to consider for tipping if you're playing a game that is designed to be -EV for everyone except the house.
That is not really economically sound.
When you look at things from an economic/EV perspective, rather than talk about dollars, you often talk about units of utility instead.
A person who plays a pit game is presumably getting some positive utility from playing it, or else they wouldn't. That utility is a combination of a $ expectation, some measure of entertainment, some amount of endorphins from scratching the gambling addiction itch, plus potentially hundreds of other utility factors (they think they have a shot with the dealer, they like to impress their friends with their ability to bet large, etc etc.).
Thus, even though they might know the game is monetarily EV-, that doesn't mean they are ignoring their overall utility by playing it. It doesn't mean that rationally they should be willing to tip, or should/will/must ignore the additional EV/utility implications that occur as a result of doing so.
It is entirely possible that "having" to tip would push a game from positive utility to negative utility for a given person, and would stop them from doing it. Having said that, I doubt it would for most people.
In summary, the people who play ($) EV- games aren't ignoring EV, exactly, they are playing a game which gives them (utility) EV+ in dimensions you just aren't considering, and tipping will certainly be a part of that equation.
Last edited by dinesh; 06-23-2018 at 03:32 PM.