Behavioral Economics

Behavioral economics explores how real-world decision-making is influenced by various psychological factors. Adding such factors into the decision-making …

Biases are systematic patterns of thinking that lead to errors in judgment, often driven by emotions, instincts, or incomplete information rather than …

Biases such as loss aversion, anchoring bias, and herd behavior significantly affect how people make decisions in everyday situations, often steering them …

People make countless decisions daily, from selecting meals to tackling work issues. These decisions are made within the constraints of bounded …

Every day, people make countless decisions, from choosing a meal to approaching a work problem. Individuals are unable to make perfect decisions due to …

The representativeness heuristic makes people judge likelihoods based on similarity to a stereotype rather than actual data. This can lead to base rate …

The anchoring heuristic is a cognitive bias in which decisions are strongly influenced by the first piece of information encountered, even if it is …

Prospect theory describes how individuals assess gains and losses, revealing that they exhibit loss aversion by placing a greater emphasis on potential …

The isolation effect is integral to prospect theory, which describes how individuals make decisions. It highlights a tendency to concentrate on what …