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The attraction of gambling
Author(s) -
Rachlin Howard,
Safin Vasiliy,
Arfer Kodi B.,
Yen Ming
Publication year - 2015
Publication title -
journal of the experimental analysis of behavior
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.75
H-Index - 61
eISSN - 1938-3711
pISSN - 0022-5002
DOI - 10.1002/jeab.113
Subject(s) - delay discounting , discounting , value (mathematics) , string (physics) , psychology , intertemporal choice , expected value , econometrics , economics , social psychology , mathematics , statistics , finance , mathematical physics
If a repeated gamble is subjectively structured into units each consisting of a string of consecutive losses followed by a single win, longer strings will necessarily be less valuable. Longer, less valuable strings will be discounted by delay more than will shorter, more valuable strings. This implies that the whole gamble's expected, delay‐discounted value will increase as delay discounting increases. With this restructuring, even games of (objectively) negative expected value, such as those at casinos, may be subjectively positive. The steeper the delay discounting, the greater the subjective value of the gamble (over normal ranges of discounting steepness). Frequent gamblers, who value gambles highly, would thus be expected to discount delayed rewards more steeply than would nongamblers.