Fear and loathing in Las Vegas: Evidence from blackjack tables
AbstractThis paper uses proprietary data from a blackjack table in Las Vegas to analyze how the expectation of regret affects peoples' decisions during gambles. Even among a group of people who choose to participate in a risk-taking activity, we find strong evidence of an economically significant omission bias: 80\% of the mistakes at the table are caused by playing too conservatively, resulting in substantial monetary losses. This behavior is equally prevalent among large-stakes gamblers and does not change in the face of more complicated strategic decisions.
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Bibliographic InfoArticle provided by Society for Judgment and Decision Making in its journal Judgment and Decision Making.
Volume (Year): 4 (2009)
Issue (Month): 5 (August)
Contact details of provider:
blackjack; gambling; omission bias; decision making.;
Other versions of this item:
- Bruce Ian Carlin & David T. Robinson, 2009. "Fear and Loathing in Las Vegas: Evidence from Blackjack Tables," NBER Working Papers 14955, National Bureau of Economic Research, Inc.
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
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