I was wondering if you have a really good read on someone and you know they're bluffing, what should you do? For example, I was playing a ring game with my friends, and they are not very good. I got 77 in MP and SB raises to to 3xbb so I call. Flop is AA3 rainbow. He bets 10xbb, and I call because I have a good read on him that he doesnt have the overpair and doesn't have the ace or 33. Turn is an 8. He bets 10xbb and I call again knowing my sevens are still good. River is another 8 and he checks to me. I bet 20xbb and he calls and shows KQ and I lose.
Now obviously in a tournament you would want to overbet the pot to take it down early to prevent a suckout, but since this is a ring game, wouldn't it be better to try and milk the guy for a lot of chips since catching a bad beat is not the end of the world (you can still buy back in)? Now looking back I probably should have reraised on the flop or turn, but perhaps by smooth calling I can represent the ace. So I guess my question is when you have a good read on a person is it best to milk them or overbet the pot and be done with it?