Frank wrote:
>Now here's how it seems to me: Take an unattractive wage, add variance and uncertainty, and the potential for loss and suddenly you have people lining up to do it. (I believe the dynamic here is random variable positive reinforcement, which should be familiar to any student of Pavlovian responses & human conditioning.) All the science says that variable reward schedules are the best at manipulating people's motivational imperatives. $8 an hour is not as desirable to people as $8 and hour paid in random $250 & $1,000 chunks, as weird as that might seem.
Even though I believe that mathematically, fluctuation is bad for
business, I doubt I would prefer it if the casino canceled all my
fluctuation and sent me a check for my expected value. Gambling is
boring enough as it is, but if the possibility of big jackpots were
removed, it might be intolerable for me.
