Prakriti Gumma - Academia.edu (original) (raw)
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Papers by Prakriti Gumma
Casinos, despite conventional economic theories predicting their unsustainability, continue to th... more Casinos, despite conventional economic theories predicting their unsustainability, continue to thrive, indicating a discrepancy between rational decision-making models and actual human behaviour. This meta-analysis explores the paradox of gambling, focusing on how psychological biases and perceived probabilities influence betting behaviours. By integrating results from various studies in the field of behavioural economics, prospect theory, and neuroeconomic research, the analysis examines why individuals gravitate towards high-risk, high-reward bets like single-number roulette wagers, despite their unfavourable odds in comparison to safer, lower-reward bets. Findings reveal that people are drawn to the allure of substantial potential gains, driven by cognitive biases and emotional factors, rather than pure rationality. The study also illustrates how these behavioural tendencies are leveraged in financial products such as prize-linked savings accounts, demonstrating the broader applicability of these theories to economic incentives and personal finance.
Casinos, despite conventional economic theories predicting their unsustainability, continue to th... more Casinos, despite conventional economic theories predicting their unsustainability, continue to thrive, indicating a discrepancy between rational decision-making models and actual human behaviour. This meta-analysis explores the paradox of gambling, focusing on how psychological biases and perceived probabilities influence betting behaviours. By integrating results from various studies in the field of behavioural economics, prospect theory, and neuroeconomic research, the analysis examines why individuals gravitate towards high-risk, high-reward bets like single-number roulette wagers, despite their unfavourable odds in comparison to safer, lower-reward bets. Findings reveal that people are drawn to the allure of substantial potential gains, driven by cognitive biases and emotional factors, rather than pure rationality. The study also illustrates how these behavioural tendencies are leveraged in financial products such as prize-linked savings accounts, demonstrating the broader applicability of these theories to economic incentives and personal finance.