Why Trump Won the Elections in View of the Prospect Theory


prospect theory, reflection effect, loss aversion

In view of the behavioral approach and the prospect theory, the article tries to explain why an alternative is sometimes chosen, which compared to other options, leads to a worse and more uncertain expected outcome. The example analyzed is D. Trumps victory in the US presidential elections in 2016. The reasons why he won lie in the candidates right strategy which takes into account the voting behaviour, and especially in the proper communication with voters, in the reflection effect and loss aversion. The validity of the prospect theory is sought not only in the political choices but also by means of a number of own studies examining its basic assumptions in Bulgarian conditions. Examples are given of applications in other fields.

JEL: D03, D72
Pages: 13
Price: 2 Points

More titles

  • Financial Science in Changing Europe Challenges and Perspectives

    With the celebration of the 65th anniversary of the first Bulgarian academic department of financial sciences (07 08 April 2017) at D. A. Tsenov Academy of Economics Svishtov, a worthy assessment has been given and there has been a debate about what has been built over the years, what the current challenges and perspectives for future ...

  • The EU Labour Market (as Viewed through the Prism of Elasticities)

    This paper discusses both theoretical paradigms and applications of labour market elasticities within the European Union of 28 member states. The paper is based onto a recent research (2014-2016), conducted by the author upon the effects on the EU-28 labour market, based on general models, explaining behaviour of elasticities of labour ...

  • Economy and Society: Highlights

    The pattern of the economic system has undergone dramatic changes over the past century, especially in terms of global markets. Golden standards are now part of the history. The US dollar has been an international monetary unit since 1944. Sixty years later, the Euro appeared. The trend in the development of economic processes indicates that ...