A behavioral economics concept where people categorize and treat money differently depending on its source or intended use. Crucial for understanding financial behavior and designing systems that align with users' mental accounting practices.
The tendency to avoid information that one perceives as potentially negative or anxiety-inducing. Important for designing experiences that encourage information-seeking behavior.
A logical fallacy that occurs when one assumes that what is true for a part is also true for the whole. Important for avoiding incorrect assumptions in design and decision-making.
A logical fallacy in which it is assumed that qualities of one thing are inherently qualities of another, due to an irrelevant association. Important for avoiding incorrect associations in user research and data interpretation.
A logical fallacy where anecdotal evidence is used to make a broad generalization. Crucial for improving critical thinking and avoiding misleading conclusions.
A tendency to avoid making decisions that might lead to regret, influencing risk-taking and decision-making behaviors. Crucial for understanding decision-making processes and designing systems that minimize regret.
A decision-making strategy where individuals allocate resources proportionally to the probability of an outcome occurring, rather than optimizing the most likely outcome. Important for understanding decision-making behaviors and designing systems that guide better resource allocation.
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. Crucial for designing systems that account for delayed gratification and long-term planning.
A decision-making strategy that involves choosing an option that meets the minimum requirements rather than seeking the optimal solution, balancing effort and outcome. Important for designing user experiences that accommodate decision-making under constraints.
A psychological phenomenon where people develop a preference for things simply because they are familiar with them. Crucial for designing user experiences that leverage familiarity to increase user comfort and satisfaction.
The error of making decisions based solely on quantitative observations and ignoring all other factors. Important for ensuring a holistic approach to decision-making.
A phenomenon where individuals' preferences between options change when the options are presented in different ways or contexts. Important for understanding and designing around inconsistencies in user choices.
The change in opinions or behavior that occurs when individuals conform to the information provided by others. Important for understanding social dynamics and designing systems that leverage social proof and peer influence.
A self-reinforcing process in which a collective belief gains more plausibility through its increasing repetition in public discourse. Important for understanding how information spreads and influences public perception.
The theory that people adjust their behavior in response to the perceived level of risk, often taking more risks when they feel more protected. Important for designing safety features and understanding behavior changes in response to risk perception.
A principle that suggests the simplest explanation is often the correct one, favoring solutions that make the fewest assumptions. Crucial for problem-solving and designing straightforward, efficient solutions.
A principle often used in behavioral economics that suggests people evaluate options based on relative comparisons rather than absolute values. Important for understanding decision-making and designing choices that highlight beneficial comparisons.
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. Important for guiding user decisions and increasing the perceived value of targeted pricing tiers.
A bias that occurs when researchers' expectations influence the outcome of a study. Crucial for designing research methods that ensure objectivity and reliability.
The process of predicting how one will feel in the future, which often involves biases and inaccuracies. Important for understanding user behavior and decision-making, aiding in the design of better user experiences.
The tendency to perceive and interpret information based on prior experiences and expectations, influencing how different users perceive design differently. Important for designing interfaces that meet user expectations, improving usability and intuitive navigation.
The tendency for individuals to continue a behavior or endeavor as a result of previously invested resources (time, money, or effort) rather than future potential benefits. Important for understanding decision-making biases and designing systems that help users avoid irrational persistence.
Information Visualization (InfoVis) is the study and practice of visual representations of abstract data to reinforce human cognition. Crucial for transforming complex data into intuitive visual formats, enabling faster insights and better decision-making.
A phenomenon where people perceive an item as more valuable when it is free, leading to an increased likelihood of choosing the free item over a discounted one. Important for understanding consumer behavior and designing effective marketing strategies.
The tendency for people to pay more attention to items placed in the center of a visual field. Crucial for designing layouts that maximize visibility and impact of key elements.
The study of how psychological influences affect financial behaviors and decision-making. Essential for understanding and influencing financial decision-making and behavior.
The tendency for individuals to mimic the actions of a larger group, often leading to conformity and groupthink. Crucial for understanding social influence and designing experiences that consider group dynamics.
A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known. Crucial for understanding decision-making under risk and designing systems that align with user behavior.
The study of psychology as it relates to the economic decision-making processes of individuals and institutions. Essential for understanding and influencing user decision-making and behavior in economic contexts.