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Fear and loathing in Las Vegas: Evidence from blackjack tables

  • Bruce I. Carlin
  • David T. Robinson

This 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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Article provided by Society for Judgment and Decision Making in its journal Judgment and Decision Making.

Volume (Year): 4 (2009)
Issue (Month): 5 (August)
Pages: 385-396

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Handle: RePEc:jdm:journl:v:4:y:2009:i:5:p:385-396
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