Game Theory Optimal Strategies in NLH and its Economic Relevance

Abstract

This paper uses PioSolver to analyze game theory optimal strategies in No Limit Texas Hold’em assuming a variety of range constructions. Positional advantage exists for the second mover (inposition player) which gives them a more balanced mixed strategy range and approximately 60% pot share. As range construction changes so do the equilibrium strategies and expected value. These results were then translated to technology markets in order to further examine game theory optimal strategies ad positional advantages. This advantage begins to decrease as technology (flops) become more dynamic and/or as markets evolve slowly (betting and raising strategy/rule nodes are restricted).