Quote:
Originally Posted by Fore
It seems interesting you chose to clip the last sentence of that paragraph.
“ Reality is probably both because the house will take a cut plus taxes and other costs”
So most likely outcome is the both lose case. Also since the best dealers will by definition lose, they lose incentive to work harder. Overtime dealing quality reduces, rake collected reduces and rake increases to cover.
Yeah, I cut it after the non sequitur. You seem to be saying "[E]ither dealers on average make less or players on average pay more"
even in the theoretical case. And then the next sentence seems to be piled on top of that -- even if in theory the return to dealers would exactly balance, in the real world the house takes a cut and the govt takes a cut etc.... But even without considerations of the last sentence, you're making a flat statement that either dealers would make less or players would pay more.
But meh, parsing each other's posts sentence by sentence gets -EV pretty quickly.
Quote:
Capitalism involves competing and competition works. Tips are a form of capitalism.
Capitalism is terrific in the 95% of the cases where the underlying assumptions are "good enough" to accurately predict outcomes. In the US, dealer compensation is based on "voluntary" player contributions and accompanying social pressure. Some elements of perfect competition theory still apply, but it takes quite a creative mind to see that as a
clear example of capitalism.
Most players tip on each pot, incenting dealers to deal more hands. That's pretty close to capitalism. Personable, physically attractive, or technically competent dealers likely earn more tips. If those attributes add to the utility of players playing, that could also be considered an incentive toward utility-maximizing behavior. (Especially if your economic model doesn't carry any negative externalities for propagating sexism or lookism.)
But tipping isn't inherently more capitalistic. It could be up to the house to incent whatever behaviors they think increase profitability, rather than up to individual players to incent what
the players want. Most of the Fortune 500 works without tips.
And BTW "no barriers to entry of new producers" is a bedrock assumption to almost any model of perfect competition, and is violated in virtually every market, so a pure form of "capitalism" is pretty much a mirage.
"All models are wrong but some are useful" - George Box (1978)
Last edited by AKQJ10; 05-25-2023 at 01:05 PM.