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The title here on HN does not match the contents of the linked paper in the slightest. All that the researchers have shown is that "some individuals" behave irr
by WJW 4y ago
The title here on HN does not match the contents of the linked paper in the slightest. All that the researchers have shown is that "some individuals" behave irrationally in the NFT markets for NBA collectibles, and that this behavior "can be explained using preference for payoffs with lottery features and sensation seeking behavior which are both observed in individual stock market investors".
I'll just say that it has long been known that individual stock market investors as a whole do not have the best reputation for economically rational behavior in the first place, always overreacting in the swings between fear and greed. NFT investors have an even stronger reputation for irrational behavior. You only need to visit reddit to see for yourself. This does not mean that all investors behave like that, retail investors are only a small proportion of the entire market.
Extrapolating the behavior of a specific group in a specific market to "lottery seeking is pretty much everywhere" is not backed by the research in the linked paper.
- simple-thoughts 4y agoYour mistake is interpreting buyers of high risk/high payoff assets as interested in maximizing return rather than seeking entertainment. As entertainment, trading these types of “meme assets” is the consumer activity and should be viewed in the same category as other gambling consumer goods.
- WJW 4y agoI realize that, but only a small proportion of high risk/high payoff buyers is interested in seeking (gambling) entertainment in the stock market, namely the retail investor sector and specifically retail investors in meme stocks. There are plenty of other players in that market who are very much interested in maximizing return. The title as posted on HN that "lottery seeking is everywhere" is simply not true and certainly isn't backed by the paper that it links to.
- ddorian43 4y agoJust like casinos are for entertainment.
- Tenoke 4y ago>The title here on HN does not match the contents of the linked paper in the slightest. Sadly this rule is nowadays largely unenforced and people are catching on and posting even more with changed titles :/