Behavioral Economics Vocab Quiz

A subconcious error in thinking that leads to irrational decision making

• Endowment Effect

• Cognitive Bias

• Overestimation

• Hedonic Adaptation

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

• FOMO (Fear of Missing Out)

• Going along

• Group Think

• Herd Mentality

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

• Overconfidence Bias

• Big Boy Theory

• Overestimation

• Confirmation Bias

The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence

• Overconfidence Bias

• Bias of Biases

• Confirmation Bias

• Cognitive Bias

Costs that have already been incurred and cannot be recovered

• Sunk Costs

• Drowning Costs

• Losing Costs

• Flying Costs

The tendency to put more value on things you already own

• Overestimation

• Endowment Effect

• Hedonic Adaptation

• Loss Aversion

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

• Social Media Marketing

• Loss Aversion

• Overplacement

• Sunk Cost Fallacy

The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere

• FOMO (From Oklahoma Mas Ocra)

• FOMO (Fear of not being at the situation)

• FOMO (Fear of Mediocre Oysters)

• FOMO (Fear of Missing Out)

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

• Cognitive Bias

• Hedonic Adaptation

• Overconfidence Bias

• Endowment Effect

When a person mistakenly believes they are better than others

• Overplacement

• Overprecision

• Overnight Test

• Sunk Costs