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That's basically how I play it. It's worth it to call just about any raise in NL (say, within 5xBB or so) with a pocket pair, but you've got to know when to give the hand up post-flop if you didn't hit the set.
If you can manage to see the flop cheap with 3-4 other folks and manage to hit the set, you're gonna get paid off big time.
It's a poor hand to call an all-in with though, for obvious reasons (unless the guy is short-stacked in a big way). Anything less than 7-7 (and, more likely, 10s or lower) or so is at best a coin flip against an all-in, and quite possibly drawing to just 2 outs. I've seen too many folks overvalue their small pocket pairs, calling an all-in, and then looking stunned when their 4-4 is dominated by 8-8 or something.
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