Behavioral Finance

Front

Imagine you're surfing the web and suddenly an ad pops up! It's a flashy sale banner screaming 'Limited Time Only!' with a ticking countdown clock. Can you guess which psychological bias is at play here?

Back

Fear of Missing Out (FOMO)

Front

Behavioral economics

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The study of how irrational factors affect individual’s economic decisions.

Front

What economic concept is illustrated by someone braving a storm to attend a concert because they already paid for the tickets?

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Sunk Cost Fallacy

Front

Imagine this: Ally just signed up for a Netflix trial. She's super excited because now she feels like she owns a full account and values it highly. This psychological phenomenon is known as?

Back

The Endowment Effect

Front

What psychological phenomenon is Peter exhibiting when he decides to play it safe due to fear of loss?

Back

Loss Aversion

Front

Paula is scrolling through her social media feed and stumbles upon pictures of a concert her friends attended. She couldn't join them because she was stuck at work and now feels like an outsider. What is Paula experiencing?

Back

Fear of Missing Out (FOMO)

Front

Imagine you're a homeowner. Which scenario best illustrates the concept of loss aversion?

Back

You refuse to sell your home for less than what you paid for it, even if the market is down.

Front

Confirmation bias

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The tendency to hunt for information that backs up our pre-existing beliefs.

Front

People who win the lottery tend to return to their original levels of happiness after the initial excitement wears off. What is this an example of?

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Hedonic Adaptation

Front

What does FOMO, or Fear of Missing Out, mean?

Back

The anxiety that an exciting or interesting event is happening elsewhere, and you're not there.