Understanding gambling behaviour using computer simulation

Abstract

Limitations in survey, observational methods of measuring bahaviour, as well as limitations in data collected automatically by machines limit the analysis of gambling behaviours and outcomes. To overcome these shortcomings a computer simulation of Video Lottery Play was utilized to examine play behaviours and its outcome. The analysis specifically addressed the relative impact of gambling and viability of strategies used by Problem Gamblers compared to non-Problem Gambling segments. There are many industries with customers whose consumption activities are undertaken on a continuous or long-term basis can have more severe consequences financially and personally if the consumer has misconceptions of the relationship between their behavior and its outcome. The service providers in many of these industries are able to track consumption behaviours on an aggregate level. This paper illustrates how in these circumstances, where there are gaps in understanding of consumption behaviour due to the inability of consumers to provide reasonable estimates of the extent of their behaviours, Monte Carlo simulations can provide reliable estimates that can be useful to both marketers and policy makers.

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