Behavioral Economics Vocab Flashcard

Front

What is Herd Mentality?

Back

The tendency to follow group behavior.

Front

What is Overplacement?

Back

Believing one is better than others.

Front

What is Overprecision?

Back

Exaggerated certainty in answers.

Front

What is Confirmation Bias?

Back

The tendency to seek supportive information.

Front

What is the Endowment Effect?

Back

The tendency to value owned items more.

Front

What is Behavioral Economics?

Back

A field of study that examines how psychological factors influence economic decision-making.

Front

What is Loss Aversion?

Back

The tendency to prefer avoiding losses over acquiring equivalent gains.

Front

What is Anchoring?

Back

The cognitive bias where individuals rely too heavily on the first piece of information encountered.

Front

What is the Sunk Cost Fallacy?

Back

The tendency to continue an endeavor once an investment in money, effort, or time has been made.

Front

What is Prospect Theory?

Back

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk.