Satisficing
A decision-making strategy that involves choosing an option that meets the minimum requirements rather than seeking the optimal solution, balancing effort and outcome.
149 topics found for
“cognitive bias”
Probability Matching
A decision-making strategy where individuals allocate resources proportionally to the probability of an outcome occurring, rather than optimizing the most likely outcome.
Intertemporal Choice
The study of how people make choices about what and how much to do at various points in time, often involving trade-offs between costs and benefits occurring at different times.
Informational Influence
The change in opinions or behavior that occurs when individuals conform to the information provided by others.
Availability Cascade
A self-reinforcing process in which a collective belief gains more plausibility through its increasing repetition in public discourse.
Risk Compensation
The theory that people adjust their behavior in response to the perceived level of risk, often taking more risks when they feel more protected.
Occam’s Razor
A principle that suggests the simplest explanation is often the correct one, favoring solutions that make the fewest assumptions.
Decoy Pricing
A strategy where an additional, less attractive option is introduced to make other pricing options look more appealing, often steering customers towards a particular choice.
Relativity
A principle often used in behavioral economics that suggests people evaluate options based on relative comparisons rather than absolute values.