Win Big, Win Rarely, Win Never
Psychologists have long trailed in the wake of retailers and gaming companies when it comes to understanding the triggers that make people spend money. Slot machines, for instance, rely on the effect of variable interval operant conditioning to increase their takings.
Or, to put it in English, they pay out only rarely but when they do they pay out big. Turns out this makes people gamble more. Those investors who like to run small portfolios and look for big returns should take note.
Psychologists have long trailed in the wake of retailers and gaming companies when it comes to understanding the triggers that make people spend money. Slot machines, for instance, rely on the effect of variable interval operant conditioning to increase their takings.
Or, to put it in English, they pay out only rarely but when they do they pay out big. Turns out this makes people gamble more. Those investors who like to run small portfolios and look for big returns should take note.
