Sections SEARCH Skip to content Skip to site index Subscribe Log In Subscribe Log In Advertisement Upshot Supported by The pain of a loss tends to be greater than the enjoyment of a win. That has big implications for trade, and also helps explain the politics of health care and taxes. ByNeil Irwin July 13, 2018 To understand the political risks for the Trump administration in starting a trade war, not to mention in undermining Obamacare or celebrating its That’s when people feel the pain of losing something more intensely than they do the pleasure of an equivalent gain. Losing $20 feels more awful than winning $20 feels great. Originally described in 1979 in what would become a seminal paper in the field of behavioral economics, loss aversion is a persistent psychological response that researchers have found to affect actions as varied as professional golfers’ putts and taxi drivers’ work patterns. There’s strong reason to think it applies in the realm of trade politics. As trade agreements have been adopted over the last three decades, industries that have lost ground have tended to fight harder for protectionist actions than industries with potential gains from trade have fought to reduce them…. Read full this story
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Two Words That Could Shape the Politics of the Trade War: Loss Aversion have 292 words, post on www.nytimes.com at July 13, 2018. This is cached page on CuBird. If you want remove this page, please contact us.