Posted in Finance, Accounting and Economics Terms, Total Reads: 600
Definition: Liar’s Poker
This is an American game involving combination of behavioural psychology and utilizing statistical reasoning to gamble with a dollar bill. This is often played by Wall Street traders with a US dollar bill using the 8 digit serial number on it. The serial numbers are reassigned as : 0 counting as 10 while 1 counts as ACE. The game is played with a random collection of dollar bills stacked with the objective of guessing correctly how often a number appears In the dollar bill held by players. Just like in a gamble the value of guess’ also increases until a player challenges the most recent guess.
Each of the players take up a dollar bill and looks at the serial number, only by themselves. Then one of them starts the game with an opening bid on what he/she thinks about a particular number appearing on the other dollar bills. Lets say a player B takes up the 1st bid on 5 4s implying that B is bidding on the fact that the number 4 is at least appearing more than 5 times. The next player in the queue can
• Either bid for a higher number (like 6 4s )
• Or can bid for 7 3s
• Or will have to challenge
If someone challenges his bid then all the other players are bound to display their serial numbers. If the challenger gets his notion correct (I,e there are less than 5 no 4 in the stack) then the bidder loses a dollar to all his opponents. Otherwise the bidder wins a dollar from all other opponents. In this way the game continues in a clockwise fashion.