▲ 15 r/AskEconomics
Why do people continue to gamble even when they fully understand that the expected value is negative?
reddit.comu/zawmed — 8 days ago
What economic theories explain this structure, and what are its advantages and disadvantages compared with arrangements where both profits and losses are shared proportionally?
We often think financial mistakes come from a lack of knowledge, but I suspect psychology plays a bigger role.
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Fear makes people sell investments at the worst possible time. Greed pushes people into speculative investments. Social pressure leads people to spend money they don't have on things they don't need.
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Looking back, what psychological bias has cost you the most money?
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Was it FOMO, loss aversion, overconfidence, lifestyle inflation, keeping up with others, or something else?
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What happened, and what did you learn from it?