Tag

gambling

Explore 3 cognitive biases related to this topic.

Illusion of Control

5 min read

Overestimating our influence over outcomes.

Cognitive Biases

Hot-Hand Fallacy

11 min read

The hot-hand fallacy is the belief that a person who has experienced a streak of success is more likely to continue succeeding, even when outcomes are independent and random.

Cognitive Biases / Misinterpretation of randomness

/ Hot Hand Effect

Gambler’s Fallacy

11 min read

The gambler’s fallacy is the mistaken belief that past random events make future independent events more likely to be the opposite, such as expecting a tail after many consecutive heads.

Cognitive Biases / Misunderstanding independence

/ Monte Carlo Fallacy