Behavioral Vocabulary Review

A subconscious error in thinking that leads to irrational decision making

• Cognitive Bias

• Social Media Marketing

• Sunk Costs

Study of economics that applies psychological insights into human behavior and to explain economic decision making

• Behavioral Economics

• Macro-Economics

• Economics

The tendency to search for information that supports your preconceptions and to ignore contradictory evidence.

• Confirmation Bias

• Herd Mentality

• Loss Aversion

Tendance to put more value on things you already own

• Endowment Effect

• Overconfidence Bias

• Hedonic Adaptation

An emotional response to the belief that other people are living better, more satisfying lives or you are missing important opportunities

• FOMO - Fear of Missing Out

• Sunk Costs

• Herd Mentality

Occurs when individuals adopt the beliefs, behaviors and attitudes of the majority in the group

• Herd Mentality

• Overconfidence Bias

• Confirmation Bias

Tendency people have to dislike losses more than they enjoy gains

• Loss Aversion

• Overestimation

• Cognitive Bias

The tendency people have to be more confident in their own abilities

• Overconfidence Bias

• Confirmation Bias

• Sunk Cost Fallacy

Used to combat loss aversion by imagining that overnight something you own has been replaced by cash..keep cash or buy the item

• Overnight Test

• Endowment Effect

• Overplacement

The use of social media platforms and websites to promote a product or service

• Social Media Marketing

• Sunk Costs

• Overprecision