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Thinking in a Foreign Language Helps Economic Decision-Making

In a study with implications for businesspeople in a global economy, researchers at the University of Chicago have found that people make more rational decisions when they think through a problem in a non-native tongue.

People are more likely to take favorable risks if they think in a foreign language, the new study showed. “We know from previous research that because people are naturally loss-averse, they often forgo attractive opportunities,” said UChicago psychologist Boaz Keysar, a leading expert on communication. “Our new findings demonstrate that such aversion to losses is much reduced when people make decisions in their non-native language.” (more…)

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