Peltzman Effect
The hypothesis that safety measures may lead to behavioral changes that offset the benefits of the measures, potentially leading to risk compensation.
127 topics found for
“economic behavior”
Paradox of Value
An economic theory that explains why some necessities, such as water, are less expensive than non-essentials, like diamonds, despite their greater utility.
Relativity
A principle often used in behavioral economics that suggests people evaluate options based on relative comparisons rather than absolute values.
Licensing Effect
A cognitive bias where people allow themselves to indulge after doing something positive, believing they have earned it.
Discounted Utility
A concept in behavioral economics that describes how future benefits are perceived as less valuable than immediate ones.
Projection Bias
The tendency to overestimate how much our future preferences and behaviors will align with our current preferences and behaviors.
Sunk Cost Fallacy
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.
Decision Architecture
The design of environments in which people make decisions, influencing their choices and behaviors.
Bandwagon Effect
A psychological phenomenon where people do something primarily because others are doing it.