Gambling is often accompanied by psychic utility or disutility, varying from individual to individual. For some people, the risk element in gambling produces a psychological "thrill." They derive an added psychic benefit on their subjective value scales, which they may seek even when they know the odds are mathematically against them, as in casinos or state lotteries. At the other extreme, some people experience an extreme aversion to gambling and other forms of risk-taking for religious or other reasons. For example, because of past experiences of deprivation, such as those suffered by many during the Great Depression, some individuals feel a compulsion to seek "security" at any cost. (The quest for security, however, is not always neurotic; as we shall see in a moment, there is also a reality-oriented sense of security that is sought even by more rational individuals.)

Assuming that neither of these psychic factors is present, what can we deduce about gambling and risk-taking purely from the nature of value scales and the law of diminishing marginal utility?

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