I wanted to pass along some information I learned from a really good article I ready by Annie Duke. It dealt with the concept of "sunk cost."

You might be wondering, "What are "sunk costs?"

This is a concept which has its origins in psychology and deals with assets which have already been expended. Often, people will utilize the "sunk costs" in making a decision about how to expend future assets. In doing so, they are making a mistake.

Some examples given: a person who stays in a bad relationship because "we've been going out for so long" or when you have been waiting in a long line at a store.

If a stranger looked at your relationship from the outside, they'd say, "Dude. You're wasting your time. Move on" and they'd probably be correct. The same holds true if someone walked up to the line and saw it wasn't moving at all. They'd just decide to come back later.

The main problems with taking "sunk costs" into consideration is the fact that you'll NEVER get a true return on those costs. As such, they really are valueless in the overall picture. The fact you've spent all this time should have no bearing on how you'd spend your future time if the costs/benefit ratio isn't correct.

Where the problem REALLY starts to come into play is when you consider your lost "opportunity costs" associated with your making a decision reliant on "sunk costs." If you stick out your relationship "because we've been together so long" you miss the opportunity that Mr./Mrs. Right might cross your path.

Now... having set all of the above up, you're probably wondering "what does this have to do with poker?"

Simple.

Once you've put your money into the pot, it's a "sunk cost."

Taking that cost into consideration when you're faced with a decision clouds your perspective and can lead to BAD play.

Often you hear this when someone says, "I am pot committed" as he throws his last 300 chips into the pot KNOWING he's beat.

I see this all the time and it can be maddening.

By throwing in your last chips, you are eliminating the "opportunity costs" those chips could afford you.

After all, as the saying goes, "all you need is a chip and a chair."

So... in the future, when you're having to make a decision as to whether to call or fold, do NOT consider how much money you've already invested into the hand. That's like time spent in a bad relationship. It's gone and you can't get it back (unless you make a wise decision, in the poker sense).

Divest yourself from your "sunk costs" and focus on your pot odds and outs.

Evaluate the information you have obtained. Consider your hand position, and THEN make a decision NOT because you are "pot committed" but instead because you think you are winning.

The next time you play a hand, see how many times your decision is governed by your investment into the hand, and CUT IT LOOSE.

Poker is very much a game governed by logical decisions based upon sound mathmatics.

Don't let the emotion of "sunk costs" drag your game down.

The Professor