Why We Keep Playing the Lottery
Players, and shoppers in general, think myopically about the purchase being made.
If they spend $1 buying one ticket while waiting for their turn at the supermarket checkout counter, they may buy five or six tickets in a month. However, if they ‘bracket’ their purchase together and consider buying five tickets with the $5 that they have, they are not likely to buy them all together.
SIMILAR ARTICLES & IDEAS:
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 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.
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.
Like the flip of a coin coming up with heads or tails, chance is what happens out there, and is an aspect of the physical universe. Luck, on the other hand, is a perceived value of...
People try to change the chance outcomes, and thereby their luck by using blind superstition or old ritual to affect the outcome, but there is no evidence of them working.
Luck can be increased with hard work, though what can happen out there is still anybody’s guess. The prepared mind that is able to act with speed and direction has more favourable chances than the one who is not paying attention.
Being lucky or unlucky often is our own perception and outlook towards life.
If we survive a car accident, we consider ourselves lucky to be alive or to be unlucky to be involved in the accident in the first place, ruining our vehicle.
Stress testing is a standard technique used to test how someone will perform in the "worst-case" scenario. The problem is that the "worst-case" scenario is subjective, causing an illusion of contro...
Success in “normal” circumstances does not mean that you will succeed in a crisis since, in a crisis, the rules change. However, it can make you feel confident and make you highly vulnerable to the next crisis.
Your own incentives may support an illusion of control. If you draw up your own worst-case scenarios, you will always pass, but as a result, you will develop blind spots.
Encourage innovation in risk models to increase diversification and decrease risk.