loss-aversion

Journal of Public Economics Many countries have witnessed periods of political de-polarization as well as periods of polarization. This paper shows that this can be rationalised in a dynamic model of political competition with voter loss-aversion and imperfect recall.

Economic Journal Examining voter loss aversion’s effect on electoral dynamics, this paper finds that platform loss-aversion leads to rigidity, while valence loss-aversion increases polarization. Using US House elections data, we observe incumbents adjust less than challengers to voter shifts