2019 - 22nd Annual Steven Galovich Memorial Student Symposium

Under Pressure: Legislators' Voting Behavior After a Crisis

Margo La Clair, Lake Forest College

Abstract

In 1979, Daniel Kahneman and Amos Tversky first detailed their new theory about how people behave under risk and uncertainty: prospect theory. Since this initial publication, behavioral economists and psychologists have shown that individuals will systematically stray from the predicted outcomes of expected utility with respect to decision-making under risk. However, remarkably absent from this economic literature is how the voting behavior of politicians may be affected by the status quo and loss aversion. To understand whether or not Members of Parliament exhibit voting behavior consistent with the predictions of prospect theory, this paper examines roll-call voting data between 1992 and 2005, which encompasses several crises that may have put these politicians in the domain of losses.

 
Apr 9th, 9:00 AM Apr 9th, 10:15 AM

Under Pressure: Legislators' Voting Behavior After a Crisis

Lillard 048

In 1979, Daniel Kahneman and Amos Tversky first detailed their new theory about how people behave under risk and uncertainty: prospect theory. Since this initial publication, behavioral economists and psychologists have shown that individuals will systematically stray from the predicted outcomes of expected utility with respect to decision-making under risk. However, remarkably absent from this economic literature is how the voting behavior of politicians may be affected by the status quo and loss aversion. To understand whether or not Members of Parliament exhibit voting behavior consistent with the predictions of prospect theory, this paper examines roll-call voting data between 1992 and 2005, which encompasses several crises that may have put these politicians in the domain of losses.