Gambler's Fallacy: A Gambler's Dilemma

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Authors
Sthapit, Shreyas
Issue Date
2018-03-23
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Other
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en_US
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Gambler's fallacy
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Abstract
The gambler’s fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the mistaken belief that, if something happens more frequently than normal during a given period, it will happen less frequently in the future. It may also be stated as the belief that, if something happens less frequently than normal during a given period, it will happen more frequently in the future. In situations where the outcome being observed is truly random and consists of independent trials of a random process, this belief is false. The fallacy can arise in many situations, but is most strongly associated with gambling, where it is common among players.
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