Anchor Pricing
A pricing strategy where a high-priced option is introduced first to set a reference point, making other options seem more attractive in comparison.
127 topics found for
“economic behavior”
Affective Forecasting
The process of predicting how one will feel in the future, which often involves biases and inaccuracies.
Present Bias
A cognitive bias where individuals give stronger weight to payoffs that are closer to the present time compared to those in the future.
Hedonic Adaptation
The observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.
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.
Endowment Effect
A cognitive bias where people ascribe more value to things merely because they own them.
Diversification Bias
A cognitive bias where people prefer a greater variety of options when making simultaneous choices compared to sequential choices.
Affect Heuristic
A mental shortcut where current emotions influence decisions, often bypassing logic and reasoning.
Decision Theory
The study of how individuals make choices among alternatives and the principles that guide these choices.