Gambling is an ancient economic activity, but despite its universality and importance, no single explanation for the demand for gambles has gained ascendance among economists. This paper suggests that the demand for gambles is based on the ability to obtain "something for nothing." That is, the...

The behavior known as the gambler's fallacy is exhibited when gamblers increase their wager after a series of losses. The conventional interpretation of this behavior is that, after a series of losses, the gambler views the probability of winning as having increased. However, if the probability...

Two alternative interpretations of the demand for insurance can be derived from the basic insurance model: (1) insurance is a preference for certain losses over uncertain ones of the same expected magnitude, or (2) insurance is a demand for an income transfer if the bad state of the world...

Most empirical studies of the determinants of the quality of nursing home care find a strong relationship between poor quality and a high percentage of Medicaid patients in the nursing home. These findings are often interpreted as evidence that the reimbursement rates paid for Medicaid patients...