Behavioral Economics Vocab Flashcard

Front

Subconscious error in thinking leading to irrational decisions.

Back

Cognitive Bias

Front

Tendency to conform to others' behaviors and beliefs

Back

Herd Mentality

Front

Tendency to be overly confident in abilities

Back

Overconfidence Bias

Front

Tendency to seek info supporting preconceptions, ignoring contradictory evidence.

Back

Confirmation Bias

Front

Costs that cannot be recovered

Back

Sunk Costs

Front

Value placed on owned items

Back

Endowment Effect

Front

Decision-making based on prior investments in a situation

Back

Sunk Cost Fallacy

Front

Anxiety that an exciting event may be happening elsewhere

Back

FOMO (Fear of Missing Out)

Front

Tendency to return to baseline happiness after positive or negative events

Back

Hedonic Adaptation

Front

Mistaken belief of superiority over others

Back

Overplacement