NGPF Unit 1 - Behavior Economics Review

Front

This shows how psychological, social, and cognitive factors influence people's decision-making, often deviating from traditional economic assumptions of rationality.

Back

Behavior Economics

Front

Cognitive Bias

Back

An error in the way we think that can influence our decisions

Front

Confirmation Bias

Back

Our underlying tendency to notice and focus on things that already fit our beliefs.

Front

Endowment Effect

Back

The tendency of people to value items that they own more highly than if they did not belong to them.

Front

FOMO

Back

Fear of Missing Out

Front

Hedonic Adaptation

Back

The suggestion that our brains seek out new experiences

Front

Bandwagon Effect

Back

The habit of adopting certain behaviors or beliefs because many others do the same.

Front

This describes how our decision making gets worse as we make additional choices, causing our cognitive abilities to get worn out.

Back

Decision Fatigue

Front

This is the process of attaching a reward to a given behavior.

Back

Incentivization

Front

This is when our memories of a specific time, place, or things can cause us to spend money on things that remind us of that thing. Ex: You really need to save some money, but you come across your favorite childhood snack that you have not seen in a long time.

Back

Nostalgia Effect