Journal of Risk and Uncertainty

, Volume 30, Issue 3, pp 195–209

The Gambler’s Fallacy and the Hot Hand: Empirical Data from Casinos

Article

Abstract

Research on decision making under uncertainty demonstrates that intuitive ideas of randomness depart systematically from the laws of chance. Two such departures involving random sequences of events have been documented in the laboratory, the gambler’s fallacy and the hot hand. This study presents results from the field, using videotapes of patrons gambling in a casino, to examine the existence and extent of these biases in naturalistic settings. We find small but significant biases in our population, consistent with those observed in the lab.

Keywords

perceptions of randomness uncertainty field study 

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Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  1. 1.The Wharton SchoolUniversity of PennsylvaniaPhiladelphiaUSA
  2. 2.Managerial Sciences/028University of NevadaReno, Reno

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