Behavioral Economics Vocab

Front

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

Back

Social Values

Front

A subconscious error in thinking that leads to irrational decision making

Back

Cognitive Bias

Front

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

Back

Behavioral Economics

Front

Costs that have already been incurred and cannot be recovered

Back

Sunk Cost

Front

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

Back

Loss Aversion

Front

The tendency to put more value on things you already own

Back

Endowment Effect

Front

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

Back

Sunk Cost Fallacy

Front

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

Back

FOMO (fear of missing out)

Front

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

Back

Herd Mentality

Front

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

Back

Hedonic Adaptation