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The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose

Investing and gambling share key features, in that both involve risk, the coming together of two or more people, and both are voluntary activities. However, investing is generally a much better way than gambling for the average person to make long-run profits. This paper reviews evidence on two type...

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Detalles Bibliográficos
Autores principales: Newall, Philip W. S., Weiss-Cohen, Leonardo
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9105963/
https://www.ncbi.nlm.nih.gov/pubmed/35564790
http://dx.doi.org/10.3390/ijerph19095391
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author Newall, Philip W. S.
Weiss-Cohen, Leonardo
author_facet Newall, Philip W. S.
Weiss-Cohen, Leonardo
author_sort Newall, Philip W. S.
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description Investing and gambling share key features, in that both involve risk, the coming together of two or more people, and both are voluntary activities. However, investing is generally a much better way than gambling for the average person to make long-run profits. This paper reviews evidence on two types of “gamblified” investment products where this advantage does not hold for investing: high-frequency stock trading and high-risk derivatives. This review defines a gamblified investment product as one that leads most investors to lose, that attracts people at risk of experiencing gambling-related harm, and that utilizes product design principles from gambling (either by encouraging a high frequency of use or by providing the allure of big lottery-like wins). The gamblification of investing produces novel challenges for the regulation of both financial markets and gambling.
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spelling pubmed-91059632022-05-14 The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose Newall, Philip W. S. Weiss-Cohen, Leonardo Int J Environ Res Public Health Review Investing and gambling share key features, in that both involve risk, the coming together of two or more people, and both are voluntary activities. However, investing is generally a much better way than gambling for the average person to make long-run profits. This paper reviews evidence on two types of “gamblified” investment products where this advantage does not hold for investing: high-frequency stock trading and high-risk derivatives. This review defines a gamblified investment product as one that leads most investors to lose, that attracts people at risk of experiencing gambling-related harm, and that utilizes product design principles from gambling (either by encouraging a high frequency of use or by providing the allure of big lottery-like wins). The gamblification of investing produces novel challenges for the regulation of both financial markets and gambling. MDPI 2022-04-28 /pmc/articles/PMC9105963/ /pubmed/35564790 http://dx.doi.org/10.3390/ijerph19095391 Text en © 2022 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
spellingShingle Review
Newall, Philip W. S.
Weiss-Cohen, Leonardo
The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title_full The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title_fullStr The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title_full_unstemmed The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title_short The Gamblification of Investing: How a New Generation of Investors Is Being Born to Lose
title_sort gamblification of investing: how a new generation of investors is being born to lose
topic Review
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9105963/
https://www.ncbi.nlm.nih.gov/pubmed/35564790
http://dx.doi.org/10.3390/ijerph19095391
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