Cognitive Bias Categories

What is Confirmation Bias?

• The tendency to value something more highly simply because one owns it.

• The tendency to search for, interpret, favor, and recall information that confirms one's preexisting beliefs or values.

• The apprehension that others might be having rewarding experiences from which one is absent.

• The tendency to prefer avoiding losses over acquiring equivalent gains.

Which cognitive bias involves the tendency to value something more highly simply because one owns it?

• Endowment Effect

• Overconfidence Bias

• Sunk Cost Fallacy

• Transaction Utility

What does FOMO stand for?

• Fear of Missing Out

• Fear of Monetary Obligation

• Fear of Major Outcomes

• Fear of Market Overload

Which cognitive bias describes the tendency for people to quickly return to a relatively stable level of happiness despite major positive or negative events?

• Loss Aversion

• Hedonic Adaptation

• Overestimation

• Mental Accounting

What is Loss Aversion?

• The tendency to overestimate one's own abilities and underestimate the likelihood of negative outcomes.

• The tendency to justify increased investment in a decision based on prior investment.

• The tendency to prefer avoiding losses over acquiring equivalent gains.

• The perceived benefit a person receives from making a transaction.

Which cognitive bias involves the tendency to overestimate one's own abilities and underestimate the likelihood of negative outcomes?

• Overconfidence Bias

• Endowment Effect

• Sunk Cost Fallacy

• Transaction Utility

What is the Sunk Cost Fallacy?

• The tendency to search for information that confirms one's beliefs.

• The phenomenon where people justify increased investment in a decision based on prior investment.

• The tendency to overestimate the value or benefits of something.

• The practice of categorizing money into separate mental accounts.

Which cognitive bias involves the perceived benefit a person receives from making a transaction?

• Transaction Utility

• Hedonic Adaptation

• Overestimation

• Mental Accounting

What is Mental Accounting?

• The tendency to value something more highly because one owns it.

• The practice of categorizing money and assets into separate mental accounts based on subjective criteria.

• The tendency to prefer avoiding losses over acquiring equivalent gains.

• The tendency to overestimate one's own abilities.

Which cognitive bias involves the tendency to overestimate the value or benefits of something?

• Overestimation

• Endowment Effect

• Sunk Cost Fallacy

• Loss Aversion