A reader asks behavioral economist Dan Ariely, “If indeed, as suggested by loss aversion, people suffer from losing more than they enjoy winning – why would anyone become a fan of a team?” He responds:
Your description of the problem implies that people have a choice in the matter, and that they carefully consider the benefits vs the costs of becoming a fan of a particular team. Personally, I suspect that the choice of what team to root for is closer to religious convictions than to rational choice – which means that people don’t really make an active choice of what team to root for (at least not a deliberate informed one), and that they are “given” their team-affiliation by their surroundings, family and friends.
Another assumption that is implied in your question is that when people approach the choice of a team, that they consider the possible negative effects of losing relative to the emotional boost of winning. The problem with this part of your argument is that predicting our emotional reactions to losses is something we are not very good at, which means that we are not very likely to accurately take into account the full effect of loss aversion when we make choices.
Meanwhile, Argentina really could have used a World Cup win:
The national team, known here as La Selección (The Chosen), gave the country something to cheer for during a time of relentless bad news and sharp political division. Inflation in the country is running near 40 percent. Argentina’s vice president is facing corruption charges. A recent U.S. federal court judgment has ordered the government to pay back the creditors whom President Cristina Fernandez de Kirchner derides as “vultures.” Many worry their savings will be wiped out if Argentina defaults on its debts for the second time in 13 years. … The team’s World Cup run, said factory worker Diego Morales, “managed to unify the country, rich and poor,” at a time when the fraying dynasty of Fernández and her late husband, in power since 2003, has left Argentines too often feeling as though they’ve been playing on opposing teams.
(Photo: Argentinian fans in Rio de Janeiro watch as Germany defeats Argentina 1-0 in the final game of the 2014 World Cup. By Carlos Becerra/Anadolu Agency/Getty Images.)
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