deepstash

Beta

Get an account to save ideas & make your own & organize them how you wish.

STASHES TO GET YOU STARTED

© Brainstash, Inc

deepstash

Beta

The Psychology Of Lotteries

More likely to buy tickets

In an experiment, low-income participants were more likely to purchase lottery tickets when they felt that their income was low compared to a perceived standard. 

35 SAVES


This is a professional note extracted from an online article.

Read more efficiently

Save what inspires you

Remember anything

IDEA EXTRACTED FROM:

The Psychology Of Lotteries

The Psychology Of Lotteries

https://www.wired.com/2011/02/the-psychology-of-lotteries/

wired.com

4

Key Ideas

Lotteries

The lottery is cheap permission to dream about the possibility of a better life. Most players know they won't win. 

People without lots of money are more likely to participate in lotteries. On average, households that make less than $12,400 a year spend 5 % of their income on state lotteries, making it a deeply regressive tax.

More likely to buy tickets

In an experiment, low-income participants were more likely to purchase lottery tickets when they felt that their income was low compared to a perceived standard. 

The loop

Government-run lotteries appeal to poor people. This causes them to spend a disproportionate amount of their income on lotteries, which contributes to them being poor, which keeps them buying tickets.

Changing the lottery system

There is clearly a demand for playing the lottery. But low-income people spend more of their income on the lottery than other income groups.

  • A solution would be to stop marketing and advertising lotteries that target the poor.
  • States could promote and offer more games that appeal to wealthier players.
  • Financial institutions could issue investment instruments that have lottery-like qualities.

SIMILAR ARTICLES & IDEAS:

Winning A Lottery

Winning A Lottery

Human beings are not wired to grasp the concept of probability. A chance of winning a lottery, sometimes 1 in 175 million, is not something that bothers us.

The Lottery ti...

The Steady Appeal of The Lottery

The steady appeal of the lottery is due to various psychological tricks by the marketers: suspension of logic and reason and the dreams that it sells.

Using the variable rewards concept of psychology, the marketers ensure that people keep buying their tickets for years, by introducing smaller wins with much better odds. This helped lottery buyers experience the thrill of a win.

Playing the Lottery for Entertainment

The odds to win are so small that winning does not even feature in our decision matrix of buying a ticket. The game of lottery isn’t played on logic, or for investment, but for entertainment.

For as little as two dollars, a person dreams of getting a chance to win thousands of dollars, and that dream is worth the price of the ticket. The bigger the jackpot is, the more the dreams are fed.

6 more ideas

Deep Play

The End of Work in the coming decades may give way to the rise of 'Deep Play', elaborate virtual reality games mixed with religion, consumerism and other ideologies.

"Rich Dad, Poor Dad" is Fiction

John T. Reed, a real estate investor, looked into the accuracy of Kiyosaki's best-selling book and found it inaccurate:

  • The Rich Dad is most likely an invention. ...

"Rich Dad, Poor Dad" contains dangerous advice

According to John T. Reed the famous book is filled with bad advice:

Dangerous advice

  • "If you're gonna go broke, go broke big"
  • Convinces people that college is for suckers

Law-breaking advice

  • Advocates committing a felony: have rich friends for trading stock based on non-public inside information, he says "That's what friends are for."
  • Recommends tax fraud by deducting vacations and health club dues
  • Brags about using a partner weasel clause in which his cat is his partner

Kiyosaki is making money from a personality cult

Many critics pointed out that Kiyosaki is selling a cult, not financial advice.

He is accused of tapping into the fantasies of the masses & being short on specifics, both attributes of religious cults.