This paper introduces a model for bluffing that is relevant when bets are sunk and only actions determine the winner. Predictions from poker are invalid in suck nonzero sum games. Bluffing (sandbagging) occures when a weak player seeks to deceive his opponent into thinking that he is strong. A player with a moderate valuation should bluff by making a high bet and dropping out if his bluff is called. A player with a high valuation should vary his bets and should sometimes sandbag by bidding low, to induce lower bets by his rival.
