Behavioral Economics Concepts

loss aversion

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

• when a person believes they are better at something than they actually are

• the use of social media plat forms and websites to promote a product or service

overestimation

• the tendency to put more value on things you already own

• when a person believes they are better at something than they actually are

• the subconscious error in thinking that leads to irrational decision making

endowment effect

• The use of social media plat forms and websites to promote a product or service

• The tendency to conform to the behaviors around you

• The tendency to put more value on things you already own

social media marketing

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

• costs that have already been incurred and cannot be recovered

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

behavioral economics

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

• costs that have already been incurred and cannot be recovered

• the tendency people have to be mor confident in their own abilities

over confidence bias

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

• the costs that have been incurred and cannot be recovered

• when a person has and exaggerated certainty an answer is correct

over precision

• When a person has and exaggerated certainty an answer is correct

• when a person mistakenly believes they are better than others

• a subconscious error in thinking that leads to irrational decision making

cognitive bias

• A subconscious error in thinking that leads to irrational decision making

• the tendency to regard losses

• when a person believes they are better at something than they actually are

herd mentality

• The tendency to conform to the behavior and beliefs of the people around you

• when a person mistakenly believes they are better than others

• costs that have already been incurred and cannot be recovered

sunk costs

• costs that have already been incurred and cannot be recovered

• when a person mistakenly believes they are better than others

• the tendency to return