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If both sides have so much to gain, why has reaching a peaceful settlement been so difficult? Much of Israeli politics, Jha and Shayo maintain, involves weighing the risks and returns of the status quo against those of making concessions for peace. Since most Israelis are not active investors, they have little direct exposure to the broader economic costs of the conflict, leading them to underestimate the risks of the status quo. Jha and Shayo theorized that people exposed to financial markets might become more aware of these economic risks and, perhaps, more willing to consider concessions in exchange for peace..
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