Die Psychologie begrenzt rationaler Wirtschaftspolitik: Das Beispiel des Reformstaus

2001 ◽  
Vol 50 (1) ◽  
Author(s):  
Friedrich Heinemann
Keyword(s):  
Economic Policy ◽  
Bounded Rationality ◽  
Loss Aversion ◽  
Explanatory Power ◽  
Status Quo ◽  
Psychological Perspective ◽  
Full Information ◽  
Policy Options ◽  
Full Rationality ◽  
Rational Reasoning

AbstractMainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for limited rationality is given, since voters lack incentives for rational reasoning concerning their voting decision. The explanatory power of limited rationality is demonstrated for the example of reform resistance. Status quo preferences, endowment effects and loss aversion are typical deviations from full rationality and explain resistance against beneficial reforms even if there is full information and no uncertainty. From this psychological perspective, a major precondition for the implementation of reforms is the loss of status quo as an available option. Test runs of policy options may also be helpful for overcoming psychological reform resistance.

Human Rights Naturalized

2018 ◽  
Author(s):  
Allen Buchanan
Keyword(s):  
Human Rights ◽  
World War Ii ◽  
Explanatory Power ◽  
Modern Human ◽  
Status Quo ◽  
Economic Conditions ◽  
World War ◽  
Human Rights Movement ◽  
The Status ◽  
Naturalistic Theory

This chapter helps to confirm the explanatory power of the naturalistic theory of moral progress outlined in previous chapters by making two main points. First, it shows that the theory helps to explain how and why the modern human rights movement arose when it did. Second, it shows that the advances in inclusiveness achieved by the modern human rights movement depended upon the fortunate coincidence of a constellation of contingent cultural and economic conditions—and that it is therefore a dangerous mistake to assume that continued progress must occur, or even that the status quo will not substantially deteriorate. This chapter also helps to explain a disturbing period of regression (in terms of the recognition of equal basic status) that occurred between the success of British abolitionism and the founding of the modern human rights movement at the end of World War II.

scholarly journals Reconciling Loss Aversion and Gain Seeking in Judged Emotions

2021 ◽  
pp. 096372142199204
Author(s):  
Barbara A. Mellers ◽  
Siyuan Yin ◽  
Jonathan Z. Berman
Keyword(s):  
Loss Aversion ◽  
Reference Point ◽  
Emotional Reactions ◽  
Status Quo ◽  
New Approach ◽  
Negative Change ◽  
Starting Point ◽  
The Status ◽  
Positive Feelings ◽  
Negative Feelings

Is the pain of a loss greater in magnitude than the pleasure of a comparable gain? Studies that compare positive feelings about a gain with negative feelings about a comparable loss have found mixed answers to this question. The pain of a loss can be greater than, less than, or equal to the pleasure of a comparable gain. We offer a new approach to test hedonic loss aversion. This method uses emotional reactions to the reference point, a positive change, and a negative change. When we manipulated the reference point (i.e., pleasurable and painful), two distinct patterns emerged. Pain surpassed pleasure (loss aversion) when the reference point was positive, and pleasure exceeded pain (gain seeking) when the reference point was negative. A reference-dependent version of prospect theory accounts for the results. If the carriers of utility are changes from a reference point—not necessarily the status quo—both loss aversion and gain seeking are predicted. Loss aversion and gain seeking can be reconciled if you take the starting point into account.

Cognitive biases in MCDM methods: an embedded filter proposal through sustainable supplier selection problem

2020 ◽  
Vol 33 (5) ◽  
pp. 947-963
Author(s):  
Nurcan Deniz
Keyword(s):  
Loss Aversion ◽  
Supplier Selection ◽  
Cognitive Biases ◽  
Status Quo ◽  
The Other ◽  
Selection Problem ◽  
Content Type ◽  
Sustainable Supplier Selection ◽  
Comparison Of The Results ◽  
Supplier Selection Problem

PurposeExpert evaluation is the backbone of the multi-criteria decision-making (MCDM) techniques. The experts make pairwise comparisons between criteria or alternatives in this evaluation. The mainstream research focus on the ambiguity in this process and use fuzzy logic. On the other hand, cognitive biases are the other but scarcely studied challenges to make accurate decisions. The purpose of this paper is to propose pilot filters – as a debiasing strategy – embedded in the MCDM techniques to reduce the effects of framing effect, loss aversion and status quo-type cognitive biases. The applicability of the proposed methodology is shown with analytic hierarchy process-based Technique for Order-Preference by Similarity to Ideal Solution method through a sustainable supplier selection problem.Design/methodology/approachThe first filter's aim is to reduce framing bias with restructuring the questions. To manipulate the weights of criteria according to the degree of expected status quo and loss aversion biases is the second filter's aim. The second filter is implemented to a sustainable supplier selection problem.FindingsThe comparison of the results of biased and debiased ranking indicates that the best and worst suppliers did not change, but the ranking of suppliers changed. As a result, it is shown that, to obtain more accurate results, employing debiasing strategies is beneficial.Originality/valueTo the best of the author's knowledge, this approach is a novel way to cope with the cognitive biases. Applying this methodology easily to other MCDM techniques will help the decision makers to take more accurate decisions.

scholarly journals An Approximation Theorem for Vector Equilibrium Problems under Bounded Rationality

Mathematics ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 45
Author(s):  
Wensheng Jia ◽  
Xiaoling Qiu ◽  
Dingtao Peng
Keyword(s):  
Exact Solution ◽  
Bounded Rationality ◽  
Equilibrium Problems ◽  
Approximation Theorem ◽  
Optimization Problems ◽  
Vector Equilibrium Problems ◽  
Special Cases ◽  
Full Rationality ◽  
Vector Equilibrium ◽  
Special Case

In this paper, our purpose is to investigate the vector equilibrium problem of whether the approximate solution representing bounded rationality can converge to the exact solution representing complete rationality. An approximation theorem is proved for vector equilibrium problems under some general assumptions. It is also shown that the bounded rationality is an approximate way to achieve the full rationality. As a special case, we obtain some corollaries for scalar equilibrium problems. Moreover, we obtain a generic convergence theorem of the solutions of strictly-quasi-monotone vector equilibrium problems according to Baire’s theorems. As applications, we investigate vector variational inequality problems, vector optimization problems and Nash equilibrium problems of multi-objective games as special cases.

scholarly journals Loss Aversion and Status Quo Label Bias

2010 ◽  
Vol 28 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Avital Moshinsky ◽  
Maya Bar-Hillel
Keyword(s):  
Loss Aversion ◽  
Status Quo

scholarly journals Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias

1991 ◽  
Vol 5 (1) ◽  
pp. 193-206 ◽  
Author(s):  
Daniel Kahneman ◽  
Jack L Knetsch ◽  
Richard H Thaler
Keyword(s):  
Loss Aversion ◽  
Status Quo ◽  
Endowment Effect ◽  
Status Quo Bias ◽  
Current State ◽  
Auction Price

A wine-loving economist we know purchased some nice Bordeaux wines years ago at low prices. The wines have greatly appreciated in value, so that a bottle that cost only $10 when purchased would now fetch $200 at auction. This economist now drinks some of this wine occasionally, but would neither be willing to sell the wine at the auction price nor buy an additional bottle at that price. Thaler (1980) called this pattern—the fact that people often demand much more to give up an object than they would be willing to pay to acquire it—the endowment effect. The example also illustrates what Samuelson and Zeckhauser (1988) call a status quo bias, a preference for the current state that biases the economist against both buying and selling his wine. These anomalies are a manifestation of an asymmetry of value that Kahneman and Tversky (1984) call loss aversion—the disutility of giving up an object is greater that the utility associated with acquiring it. This column documents the evidence supporting endowment effects and status quo biases, and discusses their relation to loss aversion.

Public entrepreneurship and the economics of reform

2007 ◽  
Vol 3 (2) ◽  
pp. 183-202 ◽  
Author(s):  
JAN SCHNELLENBACH
Keyword(s):  
Economic Policy ◽  
Public Sector ◽  
Status Quo ◽  
Point Of View ◽  
Liberal Democracies ◽  
Checks And Balances ◽  
The Public ◽  
Public Entrepreneurship ◽  
The Status ◽  
Schumpeterian Approach

Abstract:Public entrepreneurship is commonly understood as the outcome of the activities of a Schumpeterian political innovator. However, empirical research suggests that changes to a more efficient economic policy, even if it is known and technically easy to implement, are usually delayed. This is difficult to reconcile with Schumpeterian notions of public entrepreneurship. In this paper, it is argued that the attempt to transfer a Schumpeterian approach to the public sector is fundamentally flawed. Institutional checks and balances that characterize most modern liberal democracies make the strategy of bold leadership an unlikely choice for an incumbent. If change occurs, it occurs normally as a response to the fact that the status quo has become untenable. From a normative point of view, it is argued that if public entrepreneurship nevertheless occurs, it will often be associated with unwanted consequences. A dismantling of formal institutional checks and balances is therefore not reasonable.

Psychology and opposition to free trade

2007 ◽  
Vol 6 (1) ◽  
pp. 25-44 ◽  
Author(s):  
SIMON KEMP
Keyword(s):  
International Trade ◽  
Free Trade ◽  
Comparative Advantage ◽  
Loss Aversion ◽  
General Public ◽  
Status Quo ◽  
Status Quo Bias

This paper reviews psychological reasons why the enthusiasm of the general public for free international trade might be less than that of the economist. Six specific reasons are advanced: (1) lay views of utility emphasize employment over consumption; (2) status quo bias results from loss aversion; (3) people think altruistically but parochially; (4) people often consider fairness in bargaining situations; (5) people may hold inappropriate fixed pie beliefs; and (6) people may misunderstand Ricardo's principle of comparative advantage. The reasons vary in their apparent rationality and appear to operate in concert rather than independently.

scholarly journals Aversion to option loss in a restless bandit task

2018 ◽  
Author(s):  
Danielle Navarro ◽  
Peter Tran ◽  
Nicole Baz
Keyword(s):  
Loss Aversion ◽  
Kalman Filters ◽  
Dynamic Environments ◽  
Human Learning ◽  
Judgment And Decision Making ◽  
Full Information ◽  
Filter Model ◽  
Restless Bandit ◽  
Thompson Sampling ◽  
The World

In everyday life people need to make choices without full information about the environment, which poses an explore-exploit dilemma in which one needs to balance the need to learn about the world and the need to obtain rewards from it. The explore-exploit dilemma is often studied using the multi-armed restless bandit task, in which people repeatedly select from multiple options, and human behaviour is modelled as a form of reinforcement learning via Kalman filters. Inspired by work in the judgment and decision-making literature, we present two experiments using multi- armed bandit tasks in both static and dynamic environments, in situations where options can become unviable and vanish if they are not pursued. A Kalman filter model using Thompson sampling provides an excellent account of human learning in a standard restless bandit task, but there are systematic departures in the vanishing bandit task. We estimate the structure of this loss aversion signal and consider theoretical explanations for the results.

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