Definition of liar’s poker


What is liar’s poker?

“Liar’s Poker” is a gambling game that is often associated with Wall Street traders. It involves betting on the frequency of the digits that appear in the serial numbers of US paper money.

In each round, players take turns coming up with an increasing number of digits (for example, a sequence may include: three 5s, three 6s, four 5s, etc.).

The game continues until someone says that the above proposal is a “lie.” If there is such a sequence (eg, there are four or more 5s among all saved serial numbers), the person who posted the proposal wins. Yes there are not so many (that is, there are only three 5’s), then whoever yelled the hand wins.

Lying poker, like poker itself, relies on a combination of statistical reasoning, chance, and psychological tactics.

Liar’s poker It is also the title of author Michael Lewis’ best-selling finance book, dealing with bond trading at Salomon Bros. in the late 1980s.

Key takeaways

  • Liar’s Poker is a multiplayer game that involves betting on the total number of digits contained in the serial numbers of the dollar bills held by players, turn by turn.
  • It is a game of strategy and psychology in which players randomly hold dollar bills with close attention to the serial numbers of their respective bills.
  • Liar’s Poker rules require an increase in bids, which increases the stakes of the game.
  • The game is comparable to “Liar’s Dice”, a game in which players roll the dice, hide the numbers they have rolled, and then bid on the total number of dice they believe all players with that face value rolled.
  • Liar’s poker It is also the title of a popular book on finance by Michael Lewis that describes the Wall Street bond trading culture at Salomon Brother’s (later Salomon Smith Barney).
  • With Barbarians at the gate: the fall of RJR Nabisco (by Bryan Burrough and John Helyar) and The bonfire of the vanities (by Tom Wolfe), Liar’s poker It is considered one of the books that captured Wall Street culture in the 1980s.

Understanding liar’s poker

The rules of Liar’s Poker are quite similar to those of the “Cheat” card game. Players hold randomly drawn dollar bills, paying special attention to the serial numbers on their respective invoices.

The object of the game is to fool opponents into believing that your bid does not exceed the combined sum of all serial numbers among the tickets in play.

At Liar’s Poker, if you propose, say, three “fours”, they are predicting that among all the dollar serial numbers that all players have, there are at least three “fours”. If the player’s bluff is not called, the next player must bid a frequency higher than any other digit (five “two”) or may bid a higher number at the same frequency level (three “six”).

The game continues until someone thinks the previous player is lying and bluffs. If correct, the one who bluffed wins; if not, the player who proposed the sequence wins.

Serial number of the dollar bill.

Strategies used in liar’s poker

The number of players in the game can affect the probability of winning, although the game itself rewards and greatly benefits those who use deception and deception to win. Rather than simply bidding as accurately as possible, players take turns persuading their opponents to make a mistake while playing.

The rules of the game require that the bids keep increasing, thus increasing the stakes of the game. With more than two players, it is a common strategy to continue increasing the bid given the probability of being challenged and the related probability of losing when challenging. The strategy is based on a continuous bluff in the hope of potentially winning.

The game is comparable to “Liar’s Dice”, a game in which players roll the dice, hide the numbers they have rolled, and then bid on the total number of dice they believe all players with that face value rolled. Here again, each player bids and brags until another player challenges him.

Generally, if a player poses a challenge at Liar’s Poker and they are wrong, they must pay the player who challenged. If it is determined that the player who was challenged was not correct, then he must pay each player who raised the challenge. Usually the payout is one dollar (the dollar used in the game), but it can increase depending on the agreed rules and bets.

Liar’s poker (The book)

Liar’s poker It is also the title of a popular book on finance by Michael Lewis that describes the Wall Street bond trading culture at Salomon Brother’s (later Salomon Smith Barney). It was first published in 1989.

The book offers a behind-the-scenes look at this unique and chaotic moment in American business history. With Barbarians at the gate: the fall of RJR Nabisco (by Bryan Burrough and John Helyar) and The bonfire of the vanities (by Tom Wolfe), Liar’s poker It is considered one of the books that captured Wall Street culture in the 1980s.

Lewis, who previously worked as a bond trader, has said that he intended the book to be a warning about questionable and deceptive behavior and practices in his workplace. But he admits that some people have since used the book as a model to seek personal gain.

Michael Lewis is best known for his critically acclaimed books. The big bet (2015), Moneyball (2011) and The blind side (2009), all of them adapted to big screen movies.

Liar’s Poker FAQ

Is Liar’s Poker (book) a true story?

Liar’s poker is a semi-autobiographical nonfiction book by Michael Lewis, recounting his own experiences on Wall Street in the late 1980s.

Do the Salomon brothers still exist?

In 1997, the Salomon Brothers merged with Smith Barney and formed Salomon Smith Barney. Citigroup later merged with the bank, making Salomon Smith Barney its investment banking arm. In 2003, Citigroup removed all references to the Salomon name due to its association with financial scandals.

What are the lowest and highest ranking numbers at Liar’s Poker?

At Liar’s Poker, 0s are generally the lowest ranking numbers and 9s are the highest ranking numbers.

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Mark Holland

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