Ever wondered on the following phenomenon :
Where a chance of winning a lottery is one in a million, he feels he has every chance of getting it. The chances of winning the lottery are exceedingly remote, but that doesn’t stop people from playing. Overall, approx. half of all U.S. adults collectively will spend upwards of $1,000 per month in the hopes of striking it rich
Where a virus can infect millions, he feels very confident that he will not get infected and refuses to wear a mask – refer to the recent Covid Phase 2.
In an order passed by the Delhi High Court, the judge noted that “though all the passengers had worn masks, many passengers had worn the masks below their chin 🙂 The court took suo moto cognizance of “stubborn reluctance to wear masks properly” on flight and issued guidelines
Large behavioural economics research on this.
Large payoff with small probability is preferred to small loss with large probability, given usual concave utility functions
Guess we all want to expect good things & shut out the problem of bad things.
Isn’t it ?