Positive Thinking Can Lead To Financial Irresponsibility, Like Compulsive Gambling

Looking on the bright side can lead to irresponsible financial behavior, reveals a paper from the June 2008 issue of the Journal of Consumer Research. In a series of studies, Elizabeth Cowley (University of Sydney) examines repeat gambling in the face of loss. She finds that people often engage in too much positive thinking, selectively focusing on one win among hundreds of losses when they think back on the overall experience.

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