Decision-making deficits, assessed cognitively, are often associated with mental health symptoms, however, this relationship is not fully understood. This paper explores the relationship between mental health disorders and decision-making, using the Cambridge Gambling Task (CGT). Our study investigated how decision-making varied across 20 different mental health conditions compared to controls in a sample of 572 young adults from the Minneapolis and Chicago metropolitan areas, using a computerized laboratory-based task. Almost all mental health conditions were associated with at least mild (i.e. at least small effect size) impairment in all three studied parameters of the CGT (risk adjustment, quality of decision-making and overall proportion of bet). Notably, binge eating disorder had the largest cognitive impairment and gambling disorder had moderate impairment. Post-traumatic stress disorder (PTSD) was associated with impaired decision-making while obsessive–compulsive disorder (OCD) and depression showed moderate impairment. Additionally, half of the disorders assessed had moderate to large impairment in risk adjustment.These findings suggest that mental health conditions may have a more complex cognitive profile than previously thought, and a better understanding of these impairments may aid in risk assessment and targeted clinical interventions. This study underscores the need for further research to determine the causal pathways between mental health conditions and cognition, as well as to better understand the day-to-day impact of such deficits.

This article discusses the rise of modern banking, the invention of credit and a related persistent orientation to the future inherent in credit-based economies, through the example of the novel which, as a literary form, came into being at roughly the same time. As a distinctly commercial genre and as a product of the financial revolution, novels ask readers to ‘credit’ the stories they tell with truthfulness, and to invest them with a particular form of credibility as significant narratives. At the same time, novels invite readers to imagine ‘as if’ scenarios and possible worlds in much the same way that borrowed capital enables people to construct life worlds based on resources not yet realised through investment in a speculative economy. Therefore, by examining how finance and gambling debts circulate in one particular text from the eighteenth century - Francis Burney's Cecilia - as a primary example of how credit and fictionalisation grew up together, this article argues that credit and risk feed into the narrative accounting and recounting of the text and articulate the affective structure of the financialised future that we have now inherited, and which informs how we understand ourselves as subjects, as well as how we interact with finance as a form of entertainment.

Online gambling emerged in the 1990s in the midst of a process of market liberalisation. Here, scholars have argued that the gambling industry actively seeks state regulation to authorise and legitimate its activities. Why then, since the emergence of the online gambling industry, have trade associations continually sought to develop responsible gambling codes of conduct? In this paper, I address this puzzle by documenting and tracing the development and deployment of responsible gambling codes of conduct by trade associations from the emergence of the online gambling industry in the early 1990s and through processes of increased market liberalisation at the national level and market integration at the European Union level. I argue that online gambling trade associations deploy responsible gambling codes of conduct at particular moments of opportunity to shape their members’ external legal and regulatory environment and to reproduce and embed a particular understanding of how gambling-related risks should be regulated.

Researchers have found evidence of both hot hand and gambler’s fallacy biases in lottery number selection. Which of the two opposite effects is observed is often dependent upon the nature of the lottery game, the particular sample, the local culture of the participants, or the time transpired since the seed event. By observing hundreds of millions of lottery entries over 118 consecutive semiweekly drawings, we present evidence of both effects and their longitudinal properties. With respect to the selection of individual numbers, lottery participants tend to avoid recently selected winning numbers. This gambler’s fallacy effect diminishes and the number becomes increasingly ‘hot’ until it is selected again. With respect to winning number combinations, we found strong evidence of a small but persistent hot hand bias. This bias gradually diminishes over time, but remains detectable and highly consistent for a number of years.

This paper uses proprietary data from a blackjack table in Las Vegas to analyze how the expectation of regret affects peoples’ decisions during gambles. Even among a group of people who choose to participate in a risk-taking activity, we find strong evidence of an economically significant omission bias: 80% of the mistakes at the table are caused by playing too conservatively, resulting in substantial monetary losses. This behavior is equally prevalent among large-stakes gamblers and does not change in the face of more complicated strategic decisions.

Frederick, Levis, Malliaris & Meyer (2018) report a package of laboratory studies where participants underestimate the value of “hedges”: Risky bets which cancel out the risk of another presently-held bet. However, it might be questioned to what extent laboratory findings predict field behavior. People might better understand hedges when more money is at stake, or when they have more time to reflect. We discuss three gamblers who, instead of hedging, used a costly “cash-out” option to eliminate the risk of their bets on Leicester FC’s improbable victory in the 2015/2016 English Premier League soccer season. The decision to cash-out rather than to hedge led to individual losses of up to £8,000, and did not seem plausibly explained by rational economic factors. High-stakes hedges are misunderstood too.

We explore people’s preferences for numbers in large proprietary data sets from two different lottery games. We find that choice is far from uniform, and exhibits some familiar and some new tendencies and biases. Players favor personally meaningful and situationally available numbers, and are attracted towards numbers in the center of the choice form. Frequent players avoid winning numbers from recent draws, whereas infrequent players chase these. Combinations of numbers are formed with an eye for aesthetics, and players tend to spread their numbers relatively evenly across the possible range.

UK bookies (bookmakers) herd geographically in less-affluent areas. The present work shows that UK bookies also herd with the special bets that they advertise to consumers, both in their shop window advertising and on TV adverts as shown to millions of viewers. I report an observational study of betting adverts over the 2014 soccer World Cup. Bet types vary in complexity, with complex types having the highest expected losses. Bookies herded on a common strategy of advertising special bets on two levels: by almost exclusively advertising complex bet types with high expected losses, and by advertising representative events within a given complex bet type. This evidence is most consistent with bookies’ advertising targeting a representativeness heuristic amongst bettors. Bookies may know how to nudge bettors toward larger losses.