Saturday, December 27, 2008

Losses receive more weight than gains

Books of Account
Deliberative Ecological Economics
Christos Zografos and Richard B. Howarth
( http://www.oup.com/ )

Computing costs and benefits

Cost-benefit analysis confronts fundamental anomalies, write Christos Zografos and Richard B. Howarth in the intro to Deliberative Ecological Economics. “Research on loss aversion, for example, has shown that people gauge costs and benefits in comparison with a status quo point that is defined by prevailing institutions (Knetsch 2005).”

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