Behavioral Economics - #1

Front

Which term describes the tendency to search for and favor information that confirms existing beliefs while ignoring contradictory evidence?

Back

Confirmation Bias

Front

The psychological phenomenon where people place higher value on items they own compared to identical items they don't own is called:

Back

Endowment Effect

Front

Which concept explains why people tend to feel more impacted by losses than equivalent gains?

Back

Loss Aversion

Front

The study of how psychological, emotional, and social factors influence economic decisions is known as:

Back

Behavioral Economics

Front

When people adjust to a new level of happiness or satisfaction after changes in their circumstances, this is called:

Back

Hedonic Adaptation

Front

The tendency to follow the actions of others, especially in financial decisions, is referred to as:

Back

Herd Mentality

Front

Which term describes systematic errors in thinking that affect decisions and judgments?

Back

Cognitive Bias

Front

The anxiety of missing out on rewarding experiences that others might be having is known as:

Back

FOMO

Front

When individuals overestimate their own abilities, knowledge, or accuracy of predictions, this exhibits:

Back

Overconfidence Bias

Front

The tendency to overestimate the probability or extent of something occurring is called:

Back

Overestimation