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- W2275102007 abstract "The house money effect predicts that individuals show increased risk-seeking behavior in the presence of prior gains. Although the effect’s existence is widely accepted, experimental studies that compare individuals’ risk-taking behavior using house money to individuals’ risk-taking behavior using their own money produce contradictory results. This experimental study analyzes the gambling behavior of 917 casino customers who face real losses. We find that customers who received free play at the entrance showed not higher but significantly lower levels of risk-taking behavior during their casino visit, expressed through lower average wagers. This study thus provides field evidence that rejects the existence of a house money effect. Moreover, as a result of lower levels of risk seeking, endowed customers yield better economic results in the form of smaller own-money losses when leaving the casino." @default.
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- W2275102007 date "2015-01-01" @default.
- W2275102007 modified "2023-09-25" @default.
- W2275102007 title "Do Casinos Pay Their Customers to Become Risk-Averse? Revising the House Money Effect in a Natural Experiment" @default.
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- W2275102007 doi "https://doi.org/10.2139/ssrn.2700052" @default.
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