Indonesian politics winner : Behavioral economist

Recent political movement in Jakarta, here and here The fact that SBY, JK, and MS is giving an essential proof of prospect theory . Democrat Party as the incumbent strongly hesitates in choosing VP for SBY, JK is doubtful due to its political manouver recently, not to mention "the Bakrie's connection effect", it is risky for SBY to "gamble"on these two names, since lot's of people despises these conglomerates condemning them being voraciously use their political position in expanding their Business. While JK and MS seems not to care too much on their images (well, if any..) the two are now closely intact, while both golkar and PDIP have always been in cold war eversince the new era.

prospect theory predicts that people in good condition tends to be risk averse, and people in bad condition tend to be risk neutral/less risk averse. SBY as the incumbent supported by the winning party on legislative election is in a good mood, while JK and MS are on a desperate mood.


tikno said...

Everything can change in political world.

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