Cognitive Scaffold

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MENTAL MODEL · M6326

Gambler's Fallacy

Gambler's Fallacy
BusinessHigh supportBehavioral Economics
Included
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Opposite of the hot-hand fallacy. People mistakenly believe that if a random event (e.g., coin landing heads) has occurred multiple times in a row, the probability of the opposite event (tails) increases to 'balance' the results.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

The illusion of entanglement of independent events. The law of large numbers (balancing) only takes effect with an infinite sample size; in the short term, coins have no memory. Don't buy the dip just because 'it has fallen for too long and must rise'; it may fall even longer.

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Anchor fast decisions

The gambler's fallacy mistakenly treats independent random events as having a 'balancing tendency': after consecutive heads, one mistakenly believes tails are more likely. It violates the memorylessness of independent events and is the brain's erroneous intuition about 'fairness'.

MINIMUM ACTION

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Source support: Explicit

  • link
    en.wikipedia.orghttps://en.wikipedia.org/wiki/Gambler%27s_fallacyZH · Explicit
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