The other day, while reading a book by the ‘undercover economist’ Tim Harford, I came across an example taken from poker of how people react to profits or losses. The author spent months studying poker, which, unlike most other card games, is elaborately organised at the highest level. He attended something called the World Series of poker in the gambling capital of the world, Las Vegas, and studied the techniques of what he calls ‘highly rational players’. One of them, Chris Ferguson, is a game ..
