Policy Bundling to Overcome Loss Aversion: A Method for Improving Legislative Outcomes

Katherine L Milkman; Mary Carol  Mazza; Lisa L. Shu; Chia-Jung  Tsay; Max H. Bazerman

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Article | Organizational Behavior and Human Decision Processes

Policy Bundling to Overcome Loss Aversion: A Method for Improving Legislative Outcomes

by Katherine L Milkman, Mary Carol Mazza, Lisa L. Shu, Chia-Jung Tsay and Max H. Bazerman

Keywords: Policy; Government Legislation; Outcome or Result;

Format: Print

10 pages

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Citation:

Milkman, Katherine L., Mary Carol Mazza, Lisa L. Shu, Chia-Jung Tsay, and Max H. Bazerman. "Policy Bundling to Overcome Loss Aversion: A Method for Improving Legislative Outcomes." Organizational Behavior and Human Decision Processes 117, no. 1 (January 2012): 158–167.

About the Author

Max H. Bazerman

Jesse Isidor Straus Professor of Business Administration

Negotiation, Organizations & Markets

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Article | Journal of Behavioral Economics for Policy | 2019

Pay-for-Monopoly?: An Assessment of Reverse Payment Deals by Pharmaceutical Companies

Sana Rafiq and Max Bazerman

Citation:
Rafiq, Sana, and Max Bazerman. "Pay-for-Monopoly? An Assessment of Reverse Payment Deals by Pharmaceutical Companies." Journal of Behavioral Economics for Policy 3, no. 1 (2019): 37–43. View Details

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Working Paper | 2019

Redirecting Rawlsian Reasoning toward the Greater Good

Joshua D. Greene, Karen Huang and Max Bazerman

Citation:
Greene, Joshua D., Karen Huang, and Max Bazerman. "Redirecting Rawlsian Reasoning toward the Greater Good." Working Paper, 2019. View Details

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Working Paper | 2019

Veil-of-Ignorance Reasoning Favors the Greater Good

Karen Huang, Joshua D. Greene and Max Bazerman

The “veil of ignorance” is a moral reasoning device designed to promote impartial decision-making by denying decision-makers access to potentially biasing information about who will benefit most or least from the available options. Veil-of-ignorance reasoning was originally applied by philosophers and economists to foundational questions concerning the overall organization of society. Here we apply veil-of-ignorance reasoning in a more focused way to specific moral dilemmas, all of which involve a tension between the greater good and competing moral concerns. Across six experiments (N = 5,785), three pre-registered, we find that veil-of-ignorance reasoning favors the greater good. Participants first engaged in veil-of-ignorance reasoning about a specific dilemma, asking themselves what they would want if they did not know who among those affected they would be. Participants then responded to a more conventional version of the same dilemma with a moral judgment, a policy preference, or an economic choice. Participants who first engaged in veil-of-ignorance reasoning subsequently made more utilitarian choices in response to a classic philosophical dilemma, a medical dilemma, a real donation decision between a more vs. less effective charity, and a policy decision concerning the social dilemma of autonomous vehicles. These effects depend on the impartial thinking induced by veil-of-ignorance reasoning and cannot be explained by a simple anchoring account, probabilistic reasoning, or generic perspective-taking. These studies indicate that veil-of-ignorance reasoning may be a useful tool for decision-makers who wish to make more impartial and/or socially beneficial choices.

Keywords: policy-making; procedural justice; Ethics; Decision Making; Fairness;

Citation:
Huang, Karen, Joshua D. Greene, and Max Bazerman. "Veil-of-Ignorance Reasoning Favors the Greater Good." Working Paper, July 2019. View Details

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Policy Bundling to Overcome Loss Aversion: A Method for Improving Legislative Outcomes

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