Loss Aversion: A Critical Factor for Responsible Gambling. - page 2.

serjent05

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Quote from: Betwrong on November 07, 2024, 06:58:37 AM

Quote from: memehunter on November 07, 2024, 04:27:29 AM

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

I find this like taking revenge, since people don't want to get humiliated, they tend to retaliate. in terms of gambling, people don't want to lose so in order to recover their losses, they tend to chase their losses which in the long run incur them more losses and the loop is formed. Now the person is trap in an infinite loop until he realized that he was been trapped.

Quote from: Betwrong on November 07, 2024, 06:58:37 AM

Start playing in a casino only if you are okay with losing what you have allocated for the game.

That should be the way but people tend to lose control when triggered which often happens in gambling. So instead of the plan of having a bankroll of $100, the person end up spending 10x just to chase the losses until he runs out of fund.

pawanjain

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Losing isn't something that people want but in gambling almost everyone loses money almost every day.
How we handle the losses is something that tells more about the person.
Some take it litely while the others panic and react worsely to their losses.
It's all in the mind though. The one who has a good self control is the one who can handle their losses well.

Findingnemo

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Casino built their business according to the human psychology which enables them more profits, and they are running as business so they will keep looking for the customers to be engaging also spend more money and it's our responsibility to know our limits and stop if the loss is unbearable.

It's good to know the term but I insist that we are solely responsible every decisions we make and blaming the circumstances can't help with anything.

crwth

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This cognitive effect plays a role in the part where players chase losses. It's that itch that you need to scratch that you want to get when you gain profits, and the feeling when you lose, you want to feel better, and more plays and revenge respond to it. I believe you have done well in posting with the "loss aversion" and gambling psychology.

The person must be responsible and aware of these things that could urge someone to chase it. We should be mindful of this, and I hope the decision-making is correct.

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Quote from: Chibit01 on November 13, 2024, 09:43:04 AM

I totally agree, loss aversion are in different forms, one is being too hesitant. People use the delay tactic out of hesitation to avoid losses and when they finally decide to stake on a particular round they end up losing. Just like you said gamblers chase their losses as a way to avert losses only to end up losing more money. Losing doesn't come with a good feeling and sometimes coming to terms with reality after losing is quite difficult, this is why a lot of gamblers try to chase what they have already lost by gambling more, once you are trapped in this loop losing is inevitable.

Chasing a loss that has occurred or chasing a win is one of the irresponsible behaviors in gambling, people like this are usually people who are not ready to lose their money in gambling, and people like this are usually people who have high hopes for gambling until they feel tense and afraid to lose the money they bet and when the reality happens is losing money they can't accept it and then a desire to recover the loss arises which drives them to fall deeper into gambling. When someone is trapped in this circle, not only is defeat unavoidable but with themselves being addicted, defeat seems like something that is being pursued even though they have lost many times but with the encouragement of wrong thoughts or mindsets, they continue to gamble. The reason many people are trapped is because they cannot accept the defeat that occurred and this is actually wrong behavior.

Chibit01

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I totally agree, loss aversion are in different forms, one is being too hesitant. People use the delay tactic out of hesitation to avoid losses and when they finally decide to stake on a particular round they end up losing. Just like you said gamblers chase their losses as a way to avert losses only to end up losing more money. Losing doesn't come with a good feeling and sometimes coming to terms with reality after losing is quite difficult, this is why a lot of gamblers try to chase what they have already lost by gambling more, once you are trapped in this loop losing is inevitable.

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Quote from: Jaycoinz on November 12, 2024, 11:58:20 AM

I think I agree with you on this, casinos use this psychological trap on gamblers to get them addicted to the system. It takes a disciplined mind to accept losses and simply move on and try to forget about it. Most gamblers feel the need to recover what they've lost and 90 percent times this only makes them lose more money. Once you have found yourself in this loop you are going to lose constantly. I think another concept to lose aversion would be avoiding the game totally, but trying to get back what you lost based on the feeling of regret is a dangerous move.

Stopping from gambling immediately when you think you already lost 40% so you don't have to lose more money. But that will not easily because gambling can tempt you to back to the games and spend the rest of your money. It needs a strong will that can say to yourself not to use all of your money so the psychological trap from casino will not work to you. We can not continue gambling after lose for some money because that can cause us lose control and hard to stop gambling. If you can control yourself better, you will see that is enough to playing gambling for today and you must stop gambling immediately before your losses becomes bigger. The psychological trap can makes you forget the limitation that you set it up before because there will be a wanting to continue gambling whether you lose or win.

Davidvictorson

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The casino is business. And every business has to make money. Some of the money made will go into operations, salaries, and keeping the business afloat. I think we put too much blame on casinos which is not fair. Casinos are doing what every other businesses do. For example, those businesses that do "Black Fridays" and tell you they are giving 70% off when infact they are only clearing old sales and there is nothing really off there. They encourage impulse buying, reckless buying and all of those things. You don't blame the business. So it is with casinos, they are not responsible for irresponsible gambling, the individual. I like this cognitive bias which you have explained with respect to gambling and it is on every gambler to know this and hold themselves responsible for their gambling behaviour.

TheUltraElite

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Most people will not like the face the fact that they lost money in gambling and they are themselves to blame for that. Be it their greed or their guilt, they will not want to face it.

In fact if you lose money and face the fact that you are the sole responsible person for it, the vicious cycle ends and you dont go back to play right away by try to work hard and earn money again.

It is how the casinos control the gamblers, they appear to give some nudge back to stimulate them to play but in the long run the casino wins more.

Porfirii

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The main idea behind this topic was widely developed by Kahneman. I should refresh my memory, but I think that he compared psychological differences between winning, losing, not winning and not losing, and yes, the results were impressive.

About not losing, I think that this is something that we all have experienced before in many aspects of life, and gambling is not an exception. I remember myself raising the stakes when I was a child to get some chips back, until I almost lost them all. Fortunately for me, I was lucid enough to stop in time, and the bad feeling it left me was a learning experience that lasts until today.

Like so many things in life, it's a lesson that is learned the hard way, and the sooner the better. Plan on beforehand and, if you lose, learn to accept it.

iv4n

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I try to keep it simple... If I decide to spend some money on gambling I will do it, I will play as I like to play and choose games I find attractive at that moment. Many casinos now have all sorts of features, and that's a good thing. If I get something from wagering that's just more money for playing.

I don't find loss aversion as a critical factor for responsible gambling. Most of us change our approach to gambling depending on our current mood, we change styles and in many cases, the game itself affects our gameplay, that's why we sometimes fall into tilt and more extreme gambling when we chase losses by playing with higher stakes. And all that is normal, it's all fun & games if it's the amount we can afford to lose, the first rule of responsible gambling, deposit only the amount you can lose. Make 10 deposits if your budget allows you, but once you deposit the money you can't afford to lose you are getting into a problem, and the more you do it the problem will be bigger.

Jaycoinz

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I think I agree with you on this, casinos use this psychological trap on gamblers to get them addicted to the system. It takes a disciplined mind to accept losses and simply move on and try to forget about it. Most gamblers feel the need to recover what they've lost and 90 percent times this only makes them lose more money. Once you have found yourself in this loop you are going to lose constantly. I think another concept to lose aversion would be avoiding the game totally, but trying to get back what you lost based on the feeling of regret is a dangerous move.

Yucky

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The psychological impact of loss aversion affects gamblers on different levels, and it depends on personality. Some people stop playing after a losing streak to avoid further loss, while others become more determined to win and double their stakes. Meanwhile, some individuals stick to their routine, regardless of wins or losses, since they don't exceed their budget.

Loss aversion varies from person to person. Responsible gamblers, often those who've learned from past experiences, recognize casinos' tactics to keep them hooked and ignore the tricks. They play normally and move on.

Casinos offer small rewards to exploit fear of losing, but it's up to the individual to decide. Will they fall into the casino's trap, increasing stakes, or end the game and walk away? The psychological effect is real, but it's up to each person to act on it.

peter0425

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Quote from: Nrcewker on November 12, 2024, 11:21:42 AM

Human tendency is like this only my friend. We care a lot about our hard-earned money. Hence, instead of thinking of profits, we pray that we don’t face any losses. It’s better to have some money than no money, right?

Some people are just built differently lol

I have encountered people, don’t know if they would be called brace or stupid, who would risk their hard earned money for the prospect of more. Sometimes it works out and they are hailed smart and amazing but most of the time, it doesn’t work out and they are just seen as reckless and stupid.

I think there should be a fine line between maintaining security and also risking things to reap maximum rewards.

Nrcewker

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Human tendency is like this only my friend. We care a lot about our hard-earned money. Hence, instead of thinking of profits, we pray that we don’t face any losses. It’s better to have some money than no money, right? But yes, I also agree that this mindset hampers our decisions up to certain levels. We need to understand that if we take risks, then only the risks will be converted into profits. Gambling is all about risking; hence, we need to be very careful with all the steps that we are taking.

Akbarkoe

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Risk management is something that must be understood before really jumping into the world of gambling. However, it is unfortunate that among them, gamblers do not care about this. In gambling, the risk of losing is always higher than winning, so it would be a bad thing if we spend too much money on betting. Because, this will only make us experience many losses. On the other hand, this will also only bring us closer to the risk of experiencing gambling addiction. Therefore, this risk control management is very important to consider before starting a gamble

A casino is a business, which is built to generate a profit, so it would be very silly if we go to gambling by placing lots of bets and hoping to get more profit from the bet. Therefore, come to the casino with the aim of seeking pleasure and enjoying it, not seeking profit. The casino is nothing more than a place of entertainment and you have to pay more for the pleasure you get in gambling.

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Quote from: Slow death on November 12, 2024, 10:09:16 AM

Nobody likes to lose money, but everything gets worse when people are gambling and betting money because when they lose, people get angry and start thinking about how many things they could have bought with the money they lost and for this reason they run after the loss and when they lose again, they get even more angry and put more money to recover the losses, this path leads people to bankruptcy and addiction.

It is a path with only leads to bankruptcy and addiction if one does not learn to identify those feelings and one gets carried away by them.
Funnily enough, I recently had a quite remarkable experience which serves as a good example for the topic of this thread.
I was playing blackjack on stake because I was bored, I started winning and I felt like I could have a little bit more, using my good luck, in the third hand playing blackjack I ended up lossing, immediately triggering me to continue to wager in order to get my money back, at least to break even with the house.
Though, I did not fall for it, accepted the loss and decided to move on from all of it. It is quite difficult to do so, but it is part of the discipline which is necessary for any gambler not to go bankrupt or addicted in a very short period of time...
Others with little knowledge and self-control would have chased those losses as fast as possible and end up penniless.

Slow death

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Nobody likes to lose money, but everything gets worse when people are gambling and betting money because when they lose, people get angry and start thinking about how many things they could have bought with the money they lost and for this reason they run after the loss and when they lose again, they get even more angry and put more money to recover the losses, this path leads people to bankruptcy and addiction. Unfortunately, there are few people who are in gambling who can accept losses and not chase losses. Of course, casinos are a business. They give bonuses and promotions to encourage people to play more, even when they lose all the money they deposited at the casino.

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Quote from: memehunter on November 07, 2024, 04:27:29 AM

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.

Gambling may be a distinct phenomenon, but it is not unique, because if we consider it a waste of time and money, then other activities can also be included in the same list, such as buying alcohol or drugs.
This is an illustrative approach only, but by delving deeper into gambling, finding pleasure in losing money may not be entirely correct/wrong because the goal of any gambler is to win and he cannot be happy with his loss. With the exception of unique cases of very wealthy people who always raise the slogan “Loss is an eternal treasure,” it can be considered a pathological condition like neurotic psychosis that makes a person take pleasure in unreasonable behavior or manifestations, such as enjoying pain or celebrating loss.

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Quote from: AmoreJaz on November 09, 2024, 06:13:08 PM

Quote from: Hirose UK on November 08, 2024, 01:06:31 AM

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.

Chasing losses is one of the common dilemmas of gamblers. As they want to recover their losses, they tend to continue their games thinking that they can get back what they had lost.
Lucky if you can still contain your gambling habits as you won't have financial troubles. However, if you feel you are going deep, better pause and assess your situation.

If they can think wisely, they will not trying to recover their losses but stop their gambling activity especially after losing for some money. They know that will not easy to get their lose money back to them because casino will not let that happen easily. That needs more responsible from them so they can know that gambling is just for fun reason. Even if they have some money left, they don't have to try to recover the lose because that can makes them lose all of their money in that day.

If he can learn about controlling himself from keep playing gambling, he can stop gambling anytime without thinks about the outcome that he gets before. He will consider that playing gambling is one activity that he can do in his spare time and not for makes money.

Topic: Loss Aversion: A Critical Factor for Responsible Gambling. - page 2. (Read 669 times)