Financial Discipline, Gambler’s Fallacy and Gambling Addiction among Lottery Participants

Abstract

Humans possess a remarkable ability to differentiate structure from randomness in the environment. However, this ability appears to be systematically biased. Gambler's Fallacy is an erroneous belief that an individual has about random gambling successes due to the inaccurate understanding of probability. The lottery is relatively inexpensive. The promise of a huge jackpot prize made it the most popular form of gambling among the masses. So naturally, it is seen as a socially acceptable form of gambling. The worst thing that can happen to a lottery player is getting the addiction factor to the lotteries and it can be serious trouble. The gambling addiction would be more among the lower class of the society than the above-average income group and will be more among men than women.Such gamblers will buy lotteries till they got nothing left in their hand. They will never have many personal savings and they would even take money from other fruitful investments or charities. Their family will be those who suffer the most as money will be disappeared every morning. Lotteries can be as addicting as beverages if not controlled. The majority of them would end up in bankruptcy as the odds of winning the lottery is very less

Keywords

Gambler’s Fallacy, Gambling Addiction, Financial Discipline, Cognitive Biases.

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