Lotteries are also known as “stupidity tax”; a nod to their improbable odds. In India, lotteries are often run by state governments – its an easy way to cover for their budget deficits. What these governments don’t realize is that they are fueling an addiction.
But what are the reasons behind this addiction? In the article, I talk about the behavioral science of lotteries.
Lotteries generate many ‘near misses’ thus making people believe that she is a winner even when she has lost, thus inducing a a dopamine fueled craving. I also talk about the incorrect application of ‘regression to the mean’ mental model, and how governments make it easy for someone to rationalize their lottery addiction.
Read more on livemint site here.