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Abstention by Loss-Averse Voters

Author

Listed:
  • Kohei Daido

    (School of Economics, Kwansei Gakuin University)

  • Tomoya Tajika

    (Department of Law and Economics, Hokusei Gakuen University)

Abstract

This paper builds a two-candidate election model, in which voters are loss averse and face uncertainty about whether their preferred candidate is supported by a majority. Even without costs for voting, abstention may occur when voters have expectations-based reference-dependent preferences, as in KÅ‘szegi and Rabin (2006, 2007). The model shows that loss aversion leads to the equilibrium in which abstention is more likely as an election becomes more competitive and the abstention rate of voters who prefer a minority candidate is higher than for those who prefer a majority candidate.

Suggested Citation

  • Kohei Daido & Tomoya Tajika, 2020. "Abstention by Loss-Averse Voters," Discussion Paper Series 205, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:205
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Abstention; Expectations-Based Reference-Dependent Preferences; Loss Aversion; Voting;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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