Enhance Your Learning with Economics - Irrational Behavior Flash Cards for quick learning
Behavior that deviates from rational decision-making, often influenced by cognitive biases, emotions, and heuristics.
Systematic patterns of deviation from rationality in judgment and decision-making, resulting from information processing shortcuts.
Mental shortcuts or rules of thumb that simplify decision-making, but can lead to irrational behavior.
The impact of emotions on decision-making, often leading to irrational choices and actions.
The tendency to overestimate one's abilities, knowledge, or the accuracy of one's beliefs, leading to irrational behavior.
The tendency to strongly prefer avoiding losses over acquiring gains, often leading to irrational decisions.
The tendency to rely too heavily on the first piece of information encountered (the 'anchor') when making decisions, and insufficiently adjust from that anchor.
The influence of how information is presented (framed) on decision-making, often leading to irrational choices.
The tendency to rely on immediate examples that come to mind when evaluating the probability or frequency of events, leading to biased judgments.
The tendency to judge the probability of an event based on how similar it is to a prototype or stereotype, often leading to errors in judgment.
The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, leading to biased decision-making.
The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, leading to overconfidence and biased judgments.
The tendency to value an object or resource more when one owns it, leading to irrational attachment and reluctance to part with it.
The tendency to continue investing in a project or decision based on the cumulative prior investment, even when it no longer makes rational sense.
The preference for the current state of affairs over change, often leading to resistance to new options or alternatives.
The tendency to treat money differently based on its source, intended use, or mental category, leading to irrational financial decisions.
The tendency to follow the actions or decisions of a larger group, often leading to irrational behavior and market bubbles.
The idea that individuals have limited cognitive abilities and information, leading to decision-making that is rational within those bounds but may deviate from full rationality.
A behavioral economic theory that describes how individuals make decisions under uncertainty, emphasizing the role of perceived gains and losses.
A game used in behavioral economics to study decision-making and fairness, where one player proposes a division of a sum of money and the other player can accept or reject the offer.
A classic game theory scenario that demonstrates the conflict between individual rationality and collective rationality, often leading to suboptimal outcomes.
A concept in economics that describes how individuals, acting in their own self-interest, can deplete or destroy a shared resource, leading to an overall negative outcome.
A situation where individuals can benefit from a public good without contributing to its provision, leading to underprovision of the good.
A concept in behavioral economics that suggests positive reinforcement and indirect suggestions can influence behavior and decision-making.
The design of decision-making environments to influence behavior and improve decision outcomes, often used in behavioral economics interventions.
Empirical studies conducted to test theories and concepts in behavioral economics, often involving controlled settings and participant observations.
Prominent economists who have made significant contributions to the field of behavioral economics and have been recognized with the Nobel Prize in Economic Sciences.
The practical use of behavioral economics principles and insights in various fields, such as public policy, marketing, finance, and healthcare.
A subfield of behavioral economics that focuses on the psychological and emotional factors influencing financial decisions and market outcomes.
Consumer decision-making that deviates from rational economic models, often influenced by emotions, cognitive biases, and social factors.
Investor decision-making that deviates from rational economic models, often influenced by emotions, cognitive biases, and market trends.
The process of making choices that are not based on rational analysis or logical reasoning, often influenced by biases, emotions, and heuristics.
A comparison between the assumptions, models, and methodologies of behavioral economics and traditional neoclassical economics.
The criticisms and limitations of behavioral economics as a field of study, including concerns about generalizability, replicability, and external validity.
The potential developments and advancements in the field of behavioral economics, including new research areas, applications, and interdisciplinary collaborations.
The ethical considerations and implications of using behavioral economics principles to influence behavior and decision-making, including issues of autonomy and manipulation.
The use of behavioral economics insights and interventions in the design and implementation of public policies, aiming to improve decision outcomes and societal welfare.
The application of behavioral economics principles and techniques in marketing strategies and consumer behavior analysis, aiming to influence consumer choices and preferences.
The use of behavioral economics concepts and interventions in healthcare settings, aiming to improve patient decision-making, adherence to treatments, and health outcomes.
The application of behavioral economics theories and findings in financial decision-making, investment strategies, and market analysis.
The use of behavioral economics insights and interventions in educational settings, aiming to improve student motivation, learning outcomes, and decision-making skills.
The application of behavioral economics principles and strategies in environmental decision-making, aiming to promote sustainable behaviors and conservation efforts.
The integration of behavioral economics concepts and approaches in the study of economic development, aiming to understand and address behavioral barriers to development.
The application of behavioral economics theories and methods in the study of individual and group behavior within organizations, aiming to improve decision-making and performance.
The incorporation of behavioral economics insights and models in the analysis of strategic interactions and decision-making in game theory.
The intersection of behavioral economics and social psychology, exploring the influence of social factors on economic decision-making and behavior.
The integration of behavioral economics and neuroscience, studying the neural mechanisms underlying economic decision-making and behavior.
The application of behavioral economics principles and interventions in public health initiatives, aiming to promote healthy behaviors and prevent disease.
The use of behavioral economics concepts and insights in the analysis of legal systems, regulations, and the behavior of legal actors.
The application of behavioral economics theories and methods in the study of international relations, exploring the role of cognitive biases and decision-making in global politics and diplomacy.