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Topic: Loss Aversion: A Critical Factor for Responsible Gambling. (Read 197 times)

member
Activity: 154
Merit: 47
Oh, this is very brilliant of you
Thanks but it has nothing to do with me. The information is already out there, even the contextualization of this bias.
I don't get you, biased contexts, how? Don't tell me you are being sarcastic now because what I read was on point and it's trying to balance the thoughts of the urge to gamble and the consequence of doing so for us to make an informed decision and even curb our excess if need be. That's my view and interpretation of it and personally, I appreciate it, so I see no reason why this is not a brilliant write-up. You might need more than just a piece of a line reply to convince me of that.
I was saying that since cognitive bias of Loss aversion can be applied to various fields of human endeavor, and I contextualized this in terms of gambling. This contextualization has been done by many people before me; I just gave a subcontext of how it might relate to the loss-back/rake-back practices casinos employ now a days.
Therefore, I do not see it as my 'brilliancy.' I read something from various sources and just made a point.
I am not being sarcastic in any manner, nor did 'contextualization bias' have to do anything with you (praising me).  

hero member
Activity: 1302
Merit: 503
Leading Crypto Sports Betting & Casino Platform
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.
Well people's opinion and perspective differs from one another and in the aspect of responsible gambling I think chasing over losses have been one issues that can't be opted out while gambling but it's not like it could be seen as biased, yes we can't dispute the fact that we make losses and so we can't shy away from them as well since the main aim for gambling is to win and make profits then since we can't avoid winning, losses too should not be avoided cause they are all criterias in a game.
Sometimes the mindset and attitude taken by each gambler can also be influenced by how much money they use in one betting session, when there is still a remainder that allows someone to continue it, it is possible for them to continue to pursue their defeat.
Implementing responsible attitude is not easy and it is indeed natural when someone has to try to win because this is in gambling, there is no goal that will really be prioritized by most gamblers except for the ambition to get as much victory and profit as possible.
hero member
Activity: 826
Merit: 641
Leading Crypto Sports Betting & Casino Platform
Oh, this is very brilliant of you
Thanks but it has nothing to do with me. The information is already out there, even the contextualization of this bias.
I don't get you, biased contexts, how? Don't tell me you are being sarcastic now because what I read was on point and it's trying to balance the thoughts of the urge to gamble and the consequence of doing so for us to make an informed decision and even curb our excess if need be. That's my view and interpretation of it and personally, I appreciate it, so I see no reason why this is not a brilliant write-up. You might need more than just a piece of a line reply to convince me of that.
sr. member
Activity: 1106
Merit: 397
Duelbits
Thank you for that.

It's all true and it actually happened to me. Right now, I have a big loss in one local online gambling application and I can say I am trying to move on from that loss although we cannot take the fact that the memory will still be there at the back of our heads.
I think that's the only way to avoid this. Forget all those losses and be a brand new gambler, a better one. We already know to ourselves that it is how gambling is made, for us to lose, so what else are we gaining from playing over and over again? Not much. Entertainment mostly. Emotional fluctuations. I don't even think that's a gain. It's not a good thing when you are all stressed with the losses and all you feel is rage, I'd rather avoid that.
Sports betting is also a good cure. Stick with your team, bet an amount that will just ignite your passion as a fan, and cheer louder. You won't be wasting too much money and you might win if your team will perform well per season.


As long as we gamble with the amount of money we are willing to lose, this should never happen. However, if we are reckless enough to gamble with the amount of money we are not willing to lose, or in other words, gamble with the amount of money that is clearly intended for something else, then the desire to get back what has been lost will always be there and it will be quite difficult to forget the loss. Until finally we gamble again and collect more losses. And the more losses experienced, the harder it will be to forget them.

Therefore, gamble wisely, gamble with the amount of money that is ready to be lost. and always make sure that before you start gambling, that what has become your need has been met. and those who are stressed because of gambling are those who gamble with an amount of money that is clearly intended, such as to meet needs, pay bills or other things, which the money should be used for, they are reckless in using the money to gamble and end up losing the money.
sr. member
Activity: 224
Merit: 195
I don't understand this. If losing money is painful for you, why do you continue? Sounds irrational to me.
Start playing in a casino only if you are okay with losing what you have allocated for the game. You shouldn't even start otherwise. Also, I disagree with the notion associated with loss aversion that "the pain of losing $100 is often far greater than the joy gained in finding the same amount". How can you compare pain and joy? They're entirely different experiences.

Losing money is painful to almost everyone whether it happens within or outside your pre ascribed bank roll. The question that why people gamble has various answers in psychology (dopamine, adrenaline etc.). Here we are discussing one of the major factors which can lead a fun and entertaining [even money making {poker, sports etc.}]  activity towards an addiction.
I think I agree to what "Betwrong" said, because judging by the popular saying we usually use in the gambling community (i.e Gamble what you can always afford to lose), it simply means if an individual was able to gamble $100, it automatically means he or she was willing and able to afford to lose that exact amount of money, of which I see no difference on which will be more painful or happier, inasmuch as it's the same amount of money that is either lost or won while gambling. Hence, inasmuch as everybody wants to win more while gambling, for me, I think when an equal amount is involved, the level of dopamine or adrenaline is literally at equilibrium.
The whole problem begins when gamblers are no longer interested about the fun aspect of gambling and rather prefer taking it as a source of doubling income or making earnings to satisfy needs. Any gambler under this influence begins to place priorities from the expected profits which stimulates more capital involvement without considering luck factors if on them or against them. Every gambler enjoys their win but can never be always lucky, so precautions should be deployed in other maintain a healthy bank roll without going bankrupt.
legendary
Activity: 2688
Merit: 1192
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.

Casinos use this to trap you in a vicious circle of addiction. They will give you loss-back/rake-back in the quantity, which might not have enough appeal for you to withdraw, especially after a big loss (which enabled that loss back). They will do this either by giving you your loss back or rake back in small installments (daily, weekly, or monthly) instead of giving you a lump sum amount one time. It is not that they cannot give you more, but they will deliberately do this because they want you to play with that amount and take bigger risks. After you lose that rake-back/loss-back, you will have an urge (twice as strong) to deposit and win back the lost amount (this is especially true if you are new to gambling), taking a higher risk to avoid the intra-confrontation with the fact that you have just lost x amount. The majority will lose again and again; some will even develop a defense mechanism to not even think about their big losses and continue focusing on depositing more money to cover losses.

This cognitive bias has some deep-rooted genesis in human psychology because of how we evolved. A shortage of food is more lethal than the happiness that comes with excessive food.

I am posting this because understanding this concept helps me become more responsible with my decision-making, and it might be helpful to you as well. I am eager to know opinions of other wise members.

People are inherently bad at calculating risks in general, we have a tendency to overestimate our predictive abilities and underestimate the chance of losing. It can also form part of the reason that people get so addicted to gambling - because they are angry at their poor decision making skills and keep attempting to punish the casino/bookmaker by thinking we can beat the odds. The reality is that the dispassionate computer processing algorithms and now AI are able to crunch a lot more numbers in order to make an assessment based on historical precedents, across many different data sets and probably using more recent data, will on average perform better than the often random guesses that gamblers make.
legendary
Activity: 2422
Merit: 1083
Leading Crypto Sports Betting & Casino Platform
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.

Casinos use this to trap you in a vicious circle of addiction. They will give you loss-back/rake-back in the quantity, which might not have enough appeal for you to withdraw, especially after a big loss (which enabled that loss back). They will do this either by giving you your loss back or rake back in small installments (daily, weekly, or monthly) instead of giving you a lump sum amount one time. It is not that they cannot give you more, but they will deliberately do this because they want you to play with that amount and take bigger risks. After you lose that rake-back/loss-back, you will have an urge (twice as strong) to deposit and win back the lost amount (this is especially true if you are new to gambling), taking a higher risk to avoid the intra-confrontation with the fact that you have just lost x amount. The majority will lose again and again; some will even develop a defense mechanism to not even think about their big losses and continue focusing on depositing more money to cover losses.

This cognitive bias has some deep-rooted genesis in human psychology because of how we evolved. A shortage of food is more lethal than the happiness that comes with excessive food.

I am posting this because understanding this concept helps me become more responsible with my decision-making, and it might be helpful to you as well. I am eager to know opinions of other wise members.
This is very impressive to the core, completely and absolutely educative, I love every bit of all that you have said as it speaks of high understanding of human psychology and how gambling casinos are using it to up their chances of always winning up to 100 percent if not more, I think this is one information that every gambler deserves to come across, as i believe that if every gambler will understand this, maybe it could go a great length in teaching us to master responsible gambling, or perhaps, most gambler will ultimately stop gambling for a win, but simply gamble for fun, and if in the process, a good win comes on, then it's seen as a bonus and nothing more.

Many gamblers today see gambling as a means of getting money, some even treat it as business, and this ought not to be so because even in the beginning of days, gambling used to be for fun purposes only, until money got involved.

Anyways, I hope we all learn from this and or to become better gamblers.
hero member
Activity: 1092
Merit: 747
I don't understand this. If losing money is painful for you, why do you continue? Sounds irrational to me.
Start playing in a casino only if you are okay with losing what you have allocated for the game. You shouldn't even start otherwise. Also, I disagree with the notion associated with loss aversion that "the pain of losing $100 is often far greater than the joy gained in finding the same amount". How can you compare pain and joy? They're entirely different experiences.

Losing money is painful to almost everyone whether it happens within or outside your pre ascribed bank roll. The question that why people gamble has various answers in psychology (dopamine, adrenaline etc.). Here we are discussing one of the major factors which can lead a fun and entertaining [even money making {poker, sports etc.}]  activity towards an addiction.
I think I agree to what "Betwrong" said, because judging by the popular saying we usually use in the gambling community (i.e Gamble what you can always afford to lose), it simply means if an individual was able to gamble $100, it automatically means he or she was willing and able to afford to lose that exact amount of money, of which I see no difference on which will be more painful or happier, inasmuch as it's the same amount of money that is either lost or won while gambling. Hence, inasmuch as everybody wants to win more while gambling, for me, I think when an equal amount is involved, the level of dopamine or adrenaline is literally at equilibrium.
hero member
Activity: 980
Merit: 585
Leading Crypto Sports Betting & Casino Platform
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.


Well people's opinion and perspective differs from one another and in the aspect of responsible gambling I think chasing over losses have been one issues that can't be opted out while gambling but it's not like it could be seen as biased, yes we can't dispute the fact that we make losses and so we can't shy away from them as well since the main aim for gambling is to win and make profits then since we can't avoid winning, losses too should not be avoided cause they are all criterias in a game.
hero member
Activity: 2926
Merit: 567
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.

This cognitive bias has some deep-rooted genesis in human psychology because of how we evolved. A shortage of food is more lethal than the happiness that comes with excessive food.

I am posting this because understanding this concept helps me become more responsible with my decision-making, and it might be helpful to you as well. I am eager to know opinions of other wise members.

I think it has something to do with our survival instinct; survival is embedded in our consciousness that we only take risks when necessary and we value not losing; its about flight or fighting in our consciousness and both of these rely on keeping us survive, This is the reason why we tend to worry because we want to survive and this causes problem, like we failed to achieve our great potential because we are afraid of losing things like our self esteem and-respect.
This term is new to me, and its worth exploring so we can make the best decision about our existence.
sr. member
Activity: 2828
Merit: 357
Eloncoin.org - Mars, here we come!
The truth is that while individuals response to loss varies, the majority of people react more to looses that to the instances they win. A win makes it look like winning is a routine that you're used to while looses comes with a burning desire to iether gamble more as a way of recovering the loss.
It is because the more you win, the less you think you’d lose. Which is stupid to think obviously especially when gambling but at the moment, if you keep winning you’d probably feel on top of the world. Like there is nothing stopping you.

But there will be and this is the loss. By the time you lost, you won’t immediately feel defeated. You’d probably think it’s just a rare occurrence and you’d start winning again but it doesn’t happen again no matter how many times you repeat it. By then all you can think about is the money you’ve lost and not how much you’ve earned.
hero member
Activity: 2184
Merit: 599
Because this is related to loss and talking about how human nature is a person and arrogance in humans, my opinion is quite simple, if you do not want to lose or loss do not gamble, do not try and never force when you don't have to lose anything in life to fight.

Because the key word is fear of loss or loss, which we understand that gambling will definitely make a loss, for me, then I have to manage money as a cost that I can tolerate the loss, but what, humans with arrogance and greed are also with their stupidity to trust something things which will not achieve other goals with the way of gambling.
sr. member
Activity: 350
Merit: 255
~
In general, there's a lot more to chase when you lose stuff compared to when you win stuff anyway. The difference between gaining and losing is massive in terms of attachment after all, since there's something you get to have and something you don't. I guess you can liken it for the idea of taking for granted what you receive (as well as the pain you get after losing those "taken for granted" stuff). Especially in cases where its in the heat of the moment, where gambling falls into.

Not that it can't be prevented though imo. Being aware of it at that moment is pretty much the only thing you'd really need afaik.
the concept of taking for granted what you've already won explains this better because that's the only justification to the concept of loss aversion as explained by the OP.
I've seen instances where someone gambled and lost very big on Tuesday and was angered with bunch of statements that suggest he's never gambling again for a long time, it didn't take him up to 12 hours before placing another bet that resulted in a loss and then another one again.

The truth is that while individuals response to loss varies, the majority of people react more to looses that to the instances they win. A win makes it look like winning is a routine that you're used to while looses comes with a burning desire to iether gamble more as a way of recovering the loss.
hero member
Activity: 574
Merit: 554
Leading Crypto Sports Betting & Casino Platform
We have plenty of cases where people gamble away their rent money or their paycheck for entire month. A brutal one was Father sold his 11 month old baby to fund his gambling addiction.
The premise was that we hate the feeling of loss that is why we tend to chase losses in order to get rid of the feeling. To avoid this inner confrontation we take bigger risk which sometime even threaten the survival. These are impulse based decisions with little thoughts about planned and safe long term future. .
The story of a man who advertised his son on Facebook and later sold him intending to pay his debt. He ended up using all the more for gambling and lost all. It was indeed a pathetic story caused by gambling addiction. And this behaviour can be developed because of the fear of experiencing the pain of failure. Because we hate the feeling of loss we end up taking more risks.
hero member
Activity: 882
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Leading Crypto Sports Betting & Casino Platform
I agree with you OP, a lot of people will never want to let go of their losses because they feel cheated, but they want to win your own money and be happy. When a gambler cannot accept his losses for real and move on with his life, he will not give up on chasing his losses till infinity, until he realized that he can not win back all that he has lost, is when he will give up. When I was 14, I played a try your luck game, and I lost the first, second and third game. Because of my fear of letting go of the money I lost, I decided to keep on playing feeling I can win back my losses, but unfortunately, I lost all the money on me. That was my first gambling lesson to always accept defeat when gambling.
member
Activity: 154
Merit: 47
At one point in my playing, I experienced loss aversion. I'm afraid to lose my money more than what I could gain, and there's also a point that I am concentrated on my rewards more than I could possibly lose.
You know what is even more interesting to me? It is the fact that loss aversion also happens when you are winning, you tends to book your winnings prematurely (fear of losing).That is exactly why casinos offer cash out feature in sport betting and even many poker platforms also exploit this cognitive bias by allowing you to cash out on turn or river and charging more rake for run it twice/thrice.
hero member
Activity: 2996
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Leading Crypto Sports Betting & Casino Platform
Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.
~

I don't understand this. If losing money is painful for you, why do you continue? Sounds irrational to me.

Start playing in a casino only if you are okay with losing what you have allocated for the game. You shouldn't even start otherwise. Also, I disagree with the notion associated with loss aversion that "the pain of losing $100 is often far greater than the joy gained in finding the same amount". How can you compare pain and joy? They're entirely different experiences.
There is a different factor why we chase losses; this is due to the adrenaline and dopamine effects on our momentum. loss aversion, is real and conclusive because we have seen many individuals come out with their decisions based on the theory of loss aversion, and there's evidence that this theory of loss aversion also plays a factor in gamblers's decisions, but we cannot apply this to all gamblers because every gambler is different from one another and circumstances play a major part.
At one point in my playing, I experienced loss aversion. I'm afraid to lose my money more than what I could gain, and there's also a point that I am concentrated on my rewards more than I could possibly lose.
member
Activity: 154
Merit: 47
Oh, this is very brilliant of you
Thanks but it has nothing to do with me. The information is already out there, even the contextualization of this bias.

I don't understand this. If losing money is painful for you, why do you continue? Sounds irrational to me.
Start playing in a casino only if you are okay with losing what you have allocated for the game. You shouldn't even start otherwise. Also, I disagree with the notion associated with loss aversion that "the pain of losing $100 is often far greater than the joy gained in finding the same amount". How can you compare pain and joy? They're entirely different experiences.

Losing money is painful to almost everyone whether it happens within or outside your pre ascribed bank roll. The question that why people gamble has various answers in psychology (dopamine, adrenaline etc.). Here we are discussing one of the major factors which can lead a fun and entertaining [even money making {poker, sports etc.}]  activity towards an addiction.
Regarding your question about methodology, you will find it quite helpful; https://insidebe.com/articles/loss-aversion/

The man has 300 dollars. He lost $100. According to these scientific studies, should he bet on the last 200 dollars, despite the risk of starving to death? How did it happen that the premise (survival is more important than satiety) led to a consequence (to win at all costs) that contradicts the premise?
We have plenty of cases where people gamble away their rent money or their paycheck for entire month. A brutal one was Father sold his 11 month old baby to fund his gambling addiction.
The premise was that we hate the feeling of loss that is why we tend to chase losses in order to get rid of the feeling. To avoid this inner confrontation we take bigger risk which sometime even threaten the survival. These are impulse based decisions with little thoughts about planned and safe long term future. .
hero member
Activity: 1736
Merit: 857
Nobel Prize selection committee seems to disagree with you  Grin as the Nobel Prize in Economics was awarded to Daniel Kahneman in 2002 for his work on prospect theory, which popularized the concept of loss aversion: 

The man has 300 dollars. He lost $100. According to these scientific studies, should he bet on the last 200 dollars, despite the risk of starving to death? How did it happen that the premise (survival is more important than satiety) led to a consequence (to win at all costs) that contradicts the premise? By the way, the Nobel Prize is increasingly biased by politics and economic interests, rather than pure science. In other words, the Nobel Prize is not an indisputable proof. However, I will not argue, because I do not impose my opinion.
hero member
Activity: 2702
Merit: 672
I don't request loans~
~
In general, there's a lot more to chase when you lose stuff compared to when you win stuff anyway. The difference between gaining and losing is massive in terms of attachment after all, since there's something you get to have and something you don't. I guess you can liken it for the idea of taking for granted what you receive (as well as the pain you get after losing those "taken for granted" stuff). Especially in cases where its in the heat of the moment, where gambling falls into.

Not that it can't be prevented though imo. Being aware of it at that moment is pretty much the only thing you'd really need afaik.
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