Abstract:

Deliberative democracy fosters greater involvement of the public in policymaking. However, psychological challenges involved in eliciting policy preferences receive little attention in this context. This study addresses the implications of opportunity cost neglect (OCN) and impact bias for policy preferences. Utilizing a survey experiment among residents of peripheral towns in Israel, we examine preferences regarding investment in rail infrastructure in peripheral areas. In line with psychological studies on OCN, we find evidence that priming awareness to alternatives can de-bias OCN in policy preferences. However, this method is less effective for people who exhibit impact bias (respondents for whom the policy is new), presenting a serious challenge to the validity of policy preferences of those who are expected to be most affected by the considered policy. This paper offers a theoretical contribution to the relationship between OCN and impact bias, and discusses the practical implications for public participation in policymaking.

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