I don’t know if this has been done before and I apologize if I’m suggesting something that’s been covered.
Prospect theory tells us that people are more afraid of losing something they already have (the “endowment effect”) than they are excited about the possibility of getting more. People are somewhat risk averse.
It seems to me that this stops many positive policy proposals—organ markets, school choice, etc.
People over-weight the possibility of failure and under-weight the possibility of gain.
“The Devil you know is better than the Devil you don’t.”
I don’t know if this has been done before and I apologize if I’m suggesting something that’s been covered.
Prospect theory tells us that people are more afraid of losing something they already have (the “endowment effect”) than they are excited about the possibility of getting more. People are somewhat risk averse.
It seems to me that this stops many positive policy proposals—organ markets, school choice, etc.
People over-weight the possibility of failure and under-weight the possibility of gain.
“The Devil you know is better than the Devil you don’t.”
What can be done to Overcome this Bias [sic]?