Hostname: page-component-8448b6f56d-c4f8m Total loading time: 0 Render date: 2024-04-24T08:36:53.224Z Has data issue: false hasContentIssue false
  • English
  • Français

Psychology and opposition to free trade

Published online by Cambridge University Press:  16 February 2007

SIMON KEMP
SIMON KEMP
Affiliation:
University of Canterbury
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper reviews psychological reasons why the enthusiasm of the general public for free international trade might be less than that of the economist. Six specific reasons are advanced: (1) lay views of utility emphasize employment over consumption; (2) status quo bias results from loss aversion; (3) people think altruistically but parochially; (4) people often consider fairness in bargaining situations; (5) people may hold inappropriate fixed pie beliefs; and (6) people may misunderstand Ricardo's principle of comparative advantage. The reasons vary in their apparent rationality and appear to operate in concert rather than independently.

Type
Research Article
Information
World Trade Review , Volume 6 , Issue 1 , March 2007 , pp. 25 - 44
Copyright
© Simon Kemp

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

I am very happy to acknowledge helpful suggestions and encouragement from Paul Brown, Linda Cameron, Ananish Chaudhuri, Marion Jansen, Patrick Low, Philip Meguire, John Tisdell and Steven Tucker. Three anonymous reviewers and the editor, Douglas Irwin, also offered constructive and very helpful feedback. Finally, I am particularly grateful for the frequent and stimulating interactions I have had with Jonathan Baron on the topic.