Quote:
|
Originally Posted by DeanT
You are an economic guy, so you tell me - time is a factor, but how much time does one take to have a good time to maximize his utility so he will come back?
The best games maximize utility do they not? Time is only a minor factor if looked at like I have above, no?
If you had to advise someone to go to a betting parlor and have a good time for a few hours, would you send them to racing, or 1.4% take on a video poker machine?
|
Yes I am and therefore I will argue with your assumptions because I think your concepts are wrong. First off, utility maximization is done over ones own personal preferences. Therefore your first question is phrased incorrectly. The only sure thing is more is better but returns are diminishing. But to assume one race equals one spin of a slot machine or one hand of cards is ridiculous.
Time is hugely important unless you are just throwing your money mindlessly. You call for perfect play in your other examples, but not in racing, where part of perfect play is waiting for the races you hold an advantage at. Only sports betting offers this option from the games you mention in that way. The other games you have to be in to see the situation and often it is too late.
The comparison you want to make is heavily reliant on time. A player may make only 5 bets at a track in a day. How many times does an equally competant player push the button for video poker? So time tells us how much takeout we face over the same period. Maybe the take on a video poker machine is only 1.5% but what is the time dependant take over the same period it takes the horseplayer to place a single bet? Time is crucial and to ignore it is being willfully blind. Vegas is not the way it is because people go in and play 5 pulls of a slot and leave.
And to your last question, I would advise the person to do with his or her money what they get the most fun from.
