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Potential Explanations Paper

Decent Essays

Potential Explanations
US – Israeli relations often appear to focus on America’s ability to enforce its sphere of influence in Israel by its diplomatic and monetary utility. Since 1976, Israel has been the most exponential annual recipient of US aid and the largest recipient of cumulative US assistance since World War II. The US had provided over 95% of economic development assistance and food aid to Israel, totaling to roughly $68 million per year between the years of 1949 and 1965. From 1966 through 1970 aid increased to about $102 million to include an estimated military loan increase of 47%. From 1971 to the present, US aid to Israel has averaged over $2 billion per year; two- thirds of which has been military assistance (Sharp,2015). The …show more content…

Their findings led to the creation of a theory about risky choices known as the Prospect theory. Based on their studies, people perceive outcomes as gains and losses rather than the totality of wealth and welfare. Thus, people place more value on outcomes that are considered certain, relative to outcomes that were only probable. They coined this phenomenon the "certainty effect" which is pertinent to the decision-making process regarding acceptable risk. Regardless of if a risk contributes to gains or to losses the "certainty effect" dictates the response (Kahneman, D., & Tversky, A. …show more content…

The Prospect theory may help explain these anomalies. This theory provides a framework for the evaluation of alternative choices made by individuals, firms and organizations. The first case to be examined is the Israeli invasion of Lebanon in 1982 which is exemplary of Israel’s occasional nonconformity to US requests. In summary, Israeli Defense Forces (IDF) invaded Lebanon despite President Reagan’s execution of a cease fire. This act of non-compliance beckons the question, why did Israel accept the risk of having sanctions imposed on them by their primary financier? Or why didn’t the US influence over Israel manifest favorable actions for the US? There is potential for an explanation by applying the Prospect theory model to the Invasion of Lebanon case study. Israel initially complied with President Reagan’s cease fire initiative until Israel constructed a perception that benefits would accrue from engaging the perceived threat of the enemy. Israel believed that while the cease fire was implemented the PLO were strengthening themselves while they, Israel, was faltering (losses) under the cease fire restrictions. Israel evaluated two alternative choices, the first choice was to continue compliance with the US cease fire initiative or alternatively, to disregard the cease

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