RE: [vpFREE] Re: Bob Dancer's LVA Column - 19 JAN 2016

 

Cogno wrote: "Setting it to zero is very lazy thinking."

This is probably true, but setting the royal to zero to generate a strategy is a bit of a sweet spot, since it optimizes the return of the non-royal hands. But one could certainly generate a strategy at say half a royal (400bets) and then ask the question: at what amount of promotion would this strategy be better than maxEV, and so on. Negative values are also plausible. One could imagine a scenario where hitting another W2G conflicts with SS or Medicare or an income based benefit and the result could easily be a strong net negative. Many people would choose to not gamble, but there may be an optimal strategy that allows one to continue gambling even when a W2G is a net negative after taxes.

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Posted by: nightoftheiguana2000@yahoo.com
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