Who Is The Banker 's Option? Essay

1568 Words Dec 5th, 2016 7 Pages
In order to formulate a strategy that adequately maximizes a contestant 's winnings, I first looked for a formula that expresses the banker’s offers. The producers of the television show purposely kept the banker’s formula secret to increase the allure and mystery of the contestant’s opponent, but there has been some research in the field. Post, Assem, Baltussen, and Thaler (2008), while looking at decision making under risk, developed their own theory about the banker’s offer which hinged upon patterns they found after examining 151 contestants from the Netherlands, Germany, and the United States (all three versions of the show follow the same format). First, the banker’s offers are dependent upon which cases are left; if high value cases have not been opened yet, the banker’s offer will be of a higher value and vice versa. Second, there is no correlation between the banker’s offer and the hidden value of the contestant’s case. Finally, the banker’s offer at the start of the game is a low percentage of the mean value of the remaining cases and gradually increases to about one hundred percent. Using these assumptions, the researchers quantified the banker using the following two equations:
(1)B(xr+1) = br+1¯xr+1
(2) br+1 = br + (1 - br)ρ(9-r)
In Equation 2, the researchers found the percentage bank offer for the round (r) using the percentage bank offer from the last round (br) and the speed at which the percentage approaches 100% (ρ) in which 0≤ρ≤1. Equation 1…

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