Policy bundling to overcome loss aversion
Subtitle: a method for improving legislative outcomes
By: Katherine L. Milkman, Mary Carol Mazza, Lisa L. Shu, Chia-Jung Tsay, Max H. Bazerman
Contributors: Harvard Business School
Series: Working paper / Harvard Business School -- 09-147; Working paper (Harvard Business School) -- 09-147.
Publisher: Harvard Business School
Published: 2009
Place of publication: [Boston]
Language: eng
Number of pages: 24
Description: Policies that would create net benefits for society but would also involve costs frequently lack the necessary support to be enacted because losses loom larger than gains psychologically. To reduce this harmful consequence of loss aversion, we propose a new type of policy bundling technique in which related bills that have both costs and benefits are combined. Using a laboratory study, we confirm across a set of four legislative domains that this bundling technique increases support for bills that have both costs and benefits. We also demonstrate that this effect is due to changes in the psychology of decision making, rather than voters' willingness to compromise and support a bill they weakly oppose when that bill is bundled with one they strongly support.
Notes: "June 2009"--Publisher's website.

Includes bibliographical references.