Tag Archives: gambling

Why People Fail to Make Accurate Predictions About Probability

dice

When we solve problems and make decisions and judgments, we very often use mental shortcuts (so-called heuristics). We use these heuristics if we neither have resources nor time to compare all available information before making a choice. In other words, heuristics ease the cognitive load of making a decision. Continue reading

Psychological Myopia: The Tendency to Think Short-Sightedly

decisions

Psychological myopia refers to the tendency in decision makers to focus on information immediately related to their judgment and to ignore other, less prominent, pieces of information. Continue reading

How Money Affects the Brain’s Reward System (Why Money is Addictive)

A study by Elliott and colleagues (2003), published in The Journal of Neuroscience, used a functional magnetic resonance imaging technique (fMRI) to identify the brain areas that are affected by rewards. The parametric technique is a way of investigating how the brain becomes activated when it is exposed to the reinforcement of money. Continue reading