Talk to Me About Payout Structures in MTTs
When talking about payout structures in large field MTTs, I seem to be encountering some confusing. There are two elements to a payout structure:
-The percentage of the field which makes the money
-The exponential increases once the money is reached
Oftentimes someone will discuss a "top heavy" payout strucutre, but are never really clear what they are talking about. Do they mean a tournament where only 2% of the field gets paid? Do they mean a SNG that pays 80/10/5/3/2? It's never really quite clear.
The difference is important because the strategies differ. Let's take an FTP tournament; say the 1000FTP Satty to the $750k. Let's say 43 people enter and the prize pool is one entry, or 43000FTPs (no overlay, no rake). Am I correct in believing that cEV = $EV here? The reverse, I assume, would be true in a satellite that paid a larger field percentage- your "Bubble Factor"
is a LOT higher, which is why these tournaments are very often misplayed (but are still profitable despite the fact that you will be paying more per hour in rake.) (http://forumserver.twoplustwo.com/15/poker-theory/pokerstars-ept-step-structure-high-rakes-now-correct-122013/)
Assuming an adequate bankroll for it (or an infinite bankroll... but why would we be playing poker then?), does a player with a large edge on the field prefer a structure that only pays one player? What if there is no rake?