Week 4 Behavioral Science

When people's preferences are dependent on how the options are presented.

• dependence

• framing effect

• dependent effect

• presentation

When a company directly owns or controls its supply chain.

• Variable costs

• Horizontal Integration

• Vertical Integration

• monopoly

A cost that's already been paid and can't be recovered.

• surplus

• Positive Externalties

• Dead Costs

• Sunk Cost

Where it is more cost effective to have one large producer rather than several smaller competing firms

• Natural Monopolies

• Monopolse

• Unnatural Monopolies

• Union

A benefit that is enjoyed by a third party as a result of an economic transaction

• Positive Externalities

• Negative externalities

• positive outcomes

• positive benefits

An organization that advances the collective interests of employees and strives to improve working conditions and increase wages

• support group

• Government

• Union

• friends

Costs that vary depending on a company's production volume.

• Considerable costs

• Variable Cost

• Accounting Costs

• dependence

Setting a limit on how much firms can pollute, and allowing those firms to buy and sell pollution permits

• Garden Markets

• Permit Markets

• Super Market

• permit selling

A price floor that prevents employers from paying workers below a specific amount.

• minimum income

• Minimum Wage

• wages

• max wage

The idea that people strongly want to avoid losing.

• Fear of Loosing

• Avoidance

• Aversion

• Loss Aversion