Cognitive Biases in Playing the Lottery: Estimating the Odds and Choosing the Numbers

Three experiments were conducted to examine the operation of the representativeness and anchoring and adjustment heuristics in lottery play. Subjects in Experiments 1 and 2 indicated their chances of winning a lottery with an objective probability of 1 in 10. Consistent with the anchoring and adjustment heuristic, subjects (in both experiments) perceived their chances of winning to be greater when the lottery was based on a single event than when it was based on a disjunctive event. Subjects in these two experiments also selected numbers to play in a pick‐3 (Experiment 1) or pick‐4 (Experiment 2) lottery. Consistent with the representativeness heuristic, subjects in Experiment 2 demonstrated a preference for numbers without repeating digits. This also occurred in Experiment 3 wherein the numbers actually played in the Indiana daily Pick‐3 lottery were examined.