Behavioral Economics Vocab

How your family, friends, and community members impact your feelings about money

• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost
• Loss Aversion

A subconscious error in thinking that leads to irrational decision making

• Cognitive Bias
• Social Values
• Behavioral Economics
• Sunk Cost
• Loss Aversion

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

• Behavioral Economics
• Social Values
• Cognitive Bias
• Sunk Cost
• Loss Aversion

Costs that have already been incurred and cannot be recovered

• Sunk Cost
• Social Values
• Cognitive Bias
• Behavioral Economics
• Loss Aversion

The tendency to regard losses as considerably more important than gains of comparable magnitude

• Loss Aversion
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost

The tendency to put more value on things you already own

• Endowment Effect
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost

The tendency to make decisions about a current situation based on what resources you have already invested in the situation

• Sunk Cost Fallacy
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost

The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

• FOMO (fear of missing out)
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost

The tendency to conform to the behaviors and beliefs of the people around you

• Herd Mentality
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost

The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event

• Hedonic Adaptation
• Social Values
• Cognitive Bias
• Behavioral Economics
• Sunk Cost