Casino Gambling: Hold 'Em Or Fold 'Em?

People who gamble at casinos know when to hold 'em - or quit while they're ahead - but have trouble deciding when to fold 'em when they're behind, says a University of Michigan researcher. A new study by Puneet Manchanda, associate professor of marketing at the U-M's Ross School of Business, shows that gamblers are less likely to continue betting if they're winning, but more likely to keep on wagering if they're losing - a phenomenon known as the "Gambler's fallacy." This is an important set of results since it is, to the knowledge, the first study to document the gambler's fallacy among casino gamblers, using individual-level behavioral data.