People Place Larger Bets When Risky Choices Provide a Postbet Option to Cash Out.
Psychol Sci
; : 9567976241266516, 2024 Aug 26.
Article
em En
| MEDLINE
| ID: mdl-39186065
ABSTRACT
After a risky choice, decision makers must frequently wait out a delay period before the outcome of their choice becomes known. In contemporary sports-betting apps, decision makers can "cash out" of their bet during this delay period by accepting a discounted immediate payout. An important open question is how availability of a postchoice cash-out option alters choice. We investigated this question using a novel gambling task that incorporated a cash-out option during the delay between bet and outcome. Across two experiments (N = 240 adults, recruited via Prolific), cash-out availability increased participants' bet amounts by up to 35%. Participants who were more likely to cash out when odds deteriorated were less likely to cash out when odds improved. Furthermore, the effect of cash-out availability on bet amounts was positively correlated with individual differences in cash-out propensity for bets with deteriorating odds only. These results suggest that cash-out availability may promote larger bets by allowing bettors to avoid losing their entire stake.
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1
Coleções:
01-internacional
Base de dados:
MEDLINE
Idioma:
En
Revista:
Psychol Sci
Assunto da revista:
PSICOLOGIA
Ano de publicação:
2024
Tipo de documento:
Article