Poker's Paradox: The Interplay of Skill, Chance, and Game Theory

Abstract

The intricate dance between skill and chance in poker has been a topic of enduring debate, resonating not just among game enthusiasts but also in legal, economic, and cultural corridors. Drawing from historical underpinnings and foundational principles of game theorypioneered by the likes of Emile Borel and notably advanced by John Von Neumannthis paper delves into the intricate interplay of skill and chance in poker. By introducing a comprehensive model that employs game theory principles, we navigate poker's multidimensional landscape, demonstrating that these elements are inextricably intertwined. Our analysis reveals that while the draw of cards introduces an inherent element of chance, a player's prowess in decision-making, strategizing, bluffing, and opponent interpretation is paramount to long-term success. This dual nature of poker where both skill and chance operate in tandem is what makes it a subject of such profound interest and complexity. By presenting poker in this nuanced light, our study seeks to break down traditional dichotomies and offers a more holistic understanding.