By the way, this logic provides some insight into poker as well.
If you are playing 10-handed no-limit hold ’em, for example, and one guy bets, then 8 guys fold pre-flop, and you have a mid-quality hand, you should fold. Even though it comes down to you against him, the fact that he is likely the best of 9 hands makes it very unlikely you have a better starting hand.
However, if there are only 3 players, one guy bets and the other guy folds, you should probably stay in as your maginal hand has a much better chance against the best of 2 random starting hands as opposed to the best of 9 random starting hands.
The act of folding in this case is like the host taking away the door with the goat.
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