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Small Amount Fallacy
This article aims to introduce and explore the "Small Amount Fallacy," shedding light on how people often assess spending based on income proportion rather than actual value. It delves into cognitive biases like Diminishing Sensitivity and Loss Aversion, establishes a theoretical framework linking the fallacy to mathematical analogies, emphasizes its implications for personal finance and policy, and suggests avenues for future research to enhance financial decision-making.
EXECUTIVE SUMMARY: Unlike Israel’s earlier peace agreements with Egypt and Jordan, the Abraham Accords involved Arab countries that do not border Israel, have never fought it on the battlefield, and are relatively unburdened by the Palestinian question. Accordingly, they were able to implement a “peopletopeople” peace that eluded their predecessors.
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Fikir Academy for strategic Studies
Sogutozu Mah, Sogutzu Cad, Cankaya, Turkey
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