Gambling motivation and involvement: A review of social

105, 60, 141–145]. The Friedman and Savage hypothesis has undergone theoretical
modification with various tweaks and wiggles in the utility function and the introduction
of other factors in making choices under uncertainty that influence the shape of
the function [136, 137, 146]. The hypothesis has also been applied more broadly to
gambling, with a focus on lifestyle improvement rather than qualitative change in
socio-economic status. Gambling is rational if it offers the possibility of such improvement
from any level in the income distribution, especially if people perceive that there
are few realistic possibilities to achieve it, i.e. through working hard or finding a better
paid job. This “weak” version of the hypothesis is said to have been embraced by
Friedman himself in the 1970s (F. Pryor, personal communication).
Alternatives to the Friedman-Savage theory have been proposed, which retain the
basic assumptions of rational actors and that the individual’s motivation for gambling
is solely monetary gain, but assume utility functions that are quite different.
The most influential of these approaches is prospect theory [34], which maintains
that the utility function is shaped not primarily in relation to absolute wealth levels
but by relative changes in wealth [147]. Prospect theory holds that, in risk taking
decisions, individuals first order possible outcomes according to various heuristics
and then, in a second phase, evaluate outcome probability in terms of relative gains
and losses (rather than absolute wealth). On the basis of this calculation, they make
a rational choice by choosing the option with the highest utility. Prospect theory
predicts that individuals are willing to partake in gambling for small probabilities,
such as lotteries with a small chance of a huge jackpot win. Similarly to other economic
approaches that assume rational behavior and that the gambler’s motivation
only concerns the chance to win money, however, prospect theory generally
fails to account for people participating in a variety of games with different payout
schemes, probabilities of winning, and sizes of top prizes [146]. In order to account
for this, a process utility of gambling must be introduced (see below).
RELEvancE tO pRObLEm GambLinG StudiES
The Friedman-Savage theory of expected utility, as well as prospect theory, accounts
for the motivation some people have for participating in lotteries and other forms of
gambling with low stakes and the chance of winning huge sums of money. The motive
is the hope of gaining money that will enable social advancement or lifestyle improvement
in general. Apparently, the theories can to some extent predict different levels of
involvement in this type of gambling across socio-economic groups. As to other forms
of gambling, the theory is of little relevance. On gaming markets with a diversity of products
– including slot machines, sports- and horse betting and casinos – lotteries are
seldom closely associated with excessive gambling and then classical expected utility
theory does not contribute much to problem gambling studies.
28 G A M B L I N G M O T I VAT I O N A N D I N V O LV E M E N T