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8 pages/β2200 words
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MLA
Subject:
Mathematics & Economics
Type:
Essay
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English (U.S.)
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Topic:
Gambling And Stock Trading: The Gambling Paradox Behavior
Essay Instructions:
A detailed outline, preferably down to the paragraph level.
The syllabus says that the paper should be about one or both of the following paradoxical observations: the large amount of gambling and the large amount of stock trading. There are two short readings that go some way toward setting out the sense in which these are paradoxical observations. Starting from those readings, you should find and summarize other work which provides theories of those observations.
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Gambling and stock trading
Outline
* INTRODUCTION
Gambling and stock trading has become a normal investment activity for those who do not shy away from risky investments which can be explained by their paradoxical behaviors.
* THESIS:
Indeed, both gambling and stock trading have a tremendous paradoxical observation in their working in that they are investments based on speculation but risky due to the high level of uncertainties.
* THE GAMBLING PARADOX BEHAVIOR
Notably, gambling is a situation of no win and participants deny making improvements on their odds even in such a game of blackjack, that present the possibility of playing in a manner that evens the odds or otherwise offers the player what appears to be improved odds.
* STOCK TRADING PARADOX BEHAVIORS
Just like the gambling, the financial markets are normally observed to have daily high levels trading filled activities which in most cases are credited to speculations
* THE NO TRADE THEORE
This consists of three major elements which are the effectiveness of the first allocation, shared knowledge of the market and an environment filled with information together with a certain level of agreement
* CONCLUSION
The no trade theorems as merely relics without much scientific content, nevertheless, gambling and stock trading is full of uncertainty. However, the speculation by the traders makes them risk takers which are shaped by their belief and optimism.
Introduction
Large numbers of people involve themselves in various forms of such speculative activities such as gambling and stock trading despite clearly being aware of the huge downside likelihood of making losses yet the companies involved in the business make lucrative profits. As such, one is left to wonder whether the participants, such as the gamblers or stock investors, simply admit making their losses as destiny or whether they strongly believe that they will somehow stun the negative chances in an unbelievable way. The paradox becomes intricate owing to the fact that such regular participants in stock trading or even gambling, are distinctly aware that they cannot avoid their regular losses yet they cannot quit such endeavors (Geanakoplos 4). Various analyses of the behavior especially for the gamblers depict that they are led by themselves to become intellectually deluded, making themselves believe that common rules of statistics that determines the chances of loss are inapplicable to them as individuals. Essentially, those who designed gambling platforms make a clever exploitation of such delusions so as to enhance the untruthful view of the situation at present (Wagenaar 22).
Thesis: Indeed, both gambling and stock trading have a tremendous paradoxical observation in their working in that they are investments based on speculation but risky due to the high level of uncertainties.
The gambling paradox behavior
The paradoxical observations seen in gambling behavior are a central part of typical theories of individual’s decision making processes, where such decisions are offered as alternatives among bets (Hirshleifer 253). Gambling according to Wagenaar, is a situation of no win...
Course title:
Professor/ Tutor:
Date of submission:
Gambling and stock trading
Outline
* INTRODUCTION
Gambling and stock trading has become a normal investment activity for those who do not shy away from risky investments which can be explained by their paradoxical behaviors.
* THESIS:
Indeed, both gambling and stock trading have a tremendous paradoxical observation in their working in that they are investments based on speculation but risky due to the high level of uncertainties.
* THE GAMBLING PARADOX BEHAVIOR
Notably, gambling is a situation of no win and participants deny making improvements on their odds even in such a game of blackjack, that present the possibility of playing in a manner that evens the odds or otherwise offers the player what appears to be improved odds.
* STOCK TRADING PARADOX BEHAVIORS
Just like the gambling, the financial markets are normally observed to have daily high levels trading filled activities which in most cases are credited to speculations
* THE NO TRADE THEORE
This consists of three major elements which are the effectiveness of the first allocation, shared knowledge of the market and an environment filled with information together with a certain level of agreement
* CONCLUSION
The no trade theorems as merely relics without much scientific content, nevertheless, gambling and stock trading is full of uncertainty. However, the speculation by the traders makes them risk takers which are shaped by their belief and optimism.
Introduction
Large numbers of people involve themselves in various forms of such speculative activities such as gambling and stock trading despite clearly being aware of the huge downside likelihood of making losses yet the companies involved in the business make lucrative profits. As such, one is left to wonder whether the participants, such as the gamblers or stock investors, simply admit making their losses as destiny or whether they strongly believe that they will somehow stun the negative chances in an unbelievable way. The paradox becomes intricate owing to the fact that such regular participants in stock trading or even gambling, are distinctly aware that they cannot avoid their regular losses yet they cannot quit such endeavors (Geanakoplos 4). Various analyses of the behavior especially for the gamblers depict that they are led by themselves to become intellectually deluded, making themselves believe that common rules of statistics that determines the chances of loss are inapplicable to them as individuals. Essentially, those who designed gambling platforms make a clever exploitation of such delusions so as to enhance the untruthful view of the situation at present (Wagenaar 22).
Thesis: Indeed, both gambling and stock trading have a tremendous paradoxical observation in their working in that they are investments based on speculation but risky due to the high level of uncertainties.
The gambling paradox behavior
The paradoxical observations seen in gambling behavior are a central part of typical theories of individual’s decision making processes, where such decisions are offered as alternatives among bets (Hirshleifer 253). Gambling according to Wagenaar, is a situation of no win...
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