The Value of Chips in MTTs

The Boss

The Boss

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One thing that confuses me is how and when chips change in value during tournaments. Can anyone shed some light or better explain how, why, and when chips change in value? Thank you, yall.
 
NHequalsFU

NHequalsFU

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Google ICM or independent chip model for poker tournaments.

I'm no expert but I believe this comes into play near bubbles, ITM(ladders) and with shorter stacks.

Lets say you have 2 extreme short stacks and you are on the money bubble. Your strategy will change because you are about to hit the money or a big pay ladder. People(most) will become tighter at this moment for fear of busting and you can use it to your advantage.
 
lilu80

lilu80

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As above, it is worth getting acquainted with this issue. Only standard Chip Chop value tournaments of your chips is:

[Your stack on the table / (field x strarting chips)] x remaing prize pool.
Field=all entries players in tournament.

Example all entries 1000 players in tournament.
Starting stack 1500. Example is semi final 18 players left.

All prize was $8000, but now remaing prize pool to 18 players all is $2500.
Your stack on the table 200000 chips.
Here value your all chips is: [200000 / (1000 x 1500)] x 2500 = $333,33.

In the final table very useful is indicator "bubble factor". However, knowledge of the bubble factor requires first knowledge of the ICM. Knowledge of ICM and bubble factor will completely answer your question. Good luck!
 
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LuisBoaC

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Simply put, chips change in value in tournaments because of the prize structure and the fact that most players leave with nothing.
For example if 10 people buy in to a tournament for $1000 and each gets a stack of 1000 then there are 10000 chips in play and $10000 in the prize pool (assuming no rake for simplicity) so each chip is worth $1. But no-one can cash out and there must be one winner. So if the pay out was 1st: 50%, 2nd: 30% and 3rd: 20%, at the end of the tournament one player will have all the chips (10k) but win 5k, making each chip worth 50c.
The actual value of chips changes throughout the tournament and becomes more important as as the game goes on.
As stated above, look into ICM, tournament equity and $EV vs chipEV.
 
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