Projection Bias
The tendency to overestimate how much our future preferences and behaviors will align with our current preferences and behaviors. Important for understanding user behavior and designing experiences that account for changes over time.
109 topics found for:
“economic decision-making”
Planning Fallacy
A cognitive bias where individuals underestimate the time, costs, and risks of future actions while overestimating the benefits. Important for realistic project planning and setting achievable goals for designers.
Allais Paradox
A decision-making paradox that shows people's preferences can violate the expected utility theory, highlighting irrational behavior. Important for understanding inconsistencies in user decision-making and designing better user experiences.
Base Rate Fallacy
A cognitive bias where people ignore general statistical information in favor of specific information. Critical for designers to use general statistical information to improve decision-making accuracy and avoid bias.
Irrational Escalation
The phenomenon where people continue a failing course of action due to the amount of resources already invested. Important for recognizing and mitigating biased decision-making.
Ambiguity Effect
A cognitive bias where decision-making is affected by the lack of information or uncertainty. Important for understanding and mitigating user decision-making biases due to uncertainty or lack of information.
Anchoring
Anchoring (also known as Focalism) is a cognitive bias where individuals rely heavily on the first piece of information (the "anchor") when making decisions. Crucial for understanding and mitigating initial information's impact on user decision-making processes.
Behavioral Strategy
The use of behavioral science insights to inform and guide strategic decision-making in organizations. Crucial for developing strategies that effectively influence behavior and drive business success.
Availability Bias
A cognitive bias where people overestimate the importance of information that is readily available. Essential for designers to understand and mitigate how easily accessible information can disproportionately influence decisions.
Active Choice
A decision-making strategy where individuals are prompted to make a choice rather than defaulting to a pre-set option. Useful for increasing user engagement and ensuring intentional decision-making.
Naive Allocation
A heuristic where individuals evenly distribute resources across all options, regardless of their specific needs or potential. Useful for understanding and designing around simplistic decision-making strategies.
Category Size Bias
A cognitive bias where people judge the likelihood of an event based on the size of its category rather than its actual probability. Crucial for designers to understand how category size influences user perception and decision-making processes.
Behavioral Game Theory
The study of strategic decision making, incorporating psychological insights into traditional game theory models. Useful for understanding complex user interactions and designing systems that account for strategic behavior.
Survivorship Bias
A cognitive bias that occurs when conclusions are drawn from a non-representative sample, focusing only on successful cases and ignoring failures. Crucial for making accurate assessments and designing systems that consider both successes and failures.
Extension Neglect
A cognitive bias where people ignore the relevance of sample size in making judgments, often leading to erroneous conclusions. Crucial for designers to account for appropriate sample sizes in research and analysis.
Affective Forecasting
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.
Framing
The way information is presented to users, which can significantly influence their decisions and perceptions. Important for designing messages and interfaces that guide user choices effectively.
Game Theory
A mathematical framework used to analyze strategic interactions where the outcomes depend on the actions of multiple decision-makers. Useful for designing systems and processes that involve competitive or cooperative interactions.
Regulatory Focus Theory
A theory that describes how individuals pursue goals using either a promotion focus (seeking gains) or a prevention focus (avoiding losses). Crucial for designing motivation strategies and understanding user behavior in goal pursuit.
Authority Principle
A principle that suggests people are more likely to comply with requests or follow suggestions from authority figures. Important for designing persuasive experiences and understanding user compliance.
Cost-Benefit
An analysis comparing the costs and benefits of a decision or project to determine its feasibility and value. Important for making informed business and design decisions.
Defaulting
The practice of setting defaults in decision environments to influence outcomes, often used in behavioral economics and design. Crucial for creating user experiences that encourage beneficial behaviors through preselected options.
Mental Accounting
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.
Business Viability
The potential for a project or solution to be economically sustainable and profitable. Important for ensuring that design and development efforts align with business goals and market demands.
Persuasion Architecture
A strategic framework that designs user experiences to guide behavior and decisions towards desired outcomes. Crucial for creating effective and ethical influence in digital interfaces.
Denomination Effect
A cognitive bias where people are less likely to spend large denominations of money compared to an equivalent amount in smaller denominations. Useful for designers to understand consumer behavior and design pricing strategies that consider spending biases.
Forecasting
The process of making predictions about future trends based on current and historical data. Useful for anticipating user needs and market trends to inform design decisions.
Law of Diminishing Returns
A principle stating that as investment in a single area increases, the rate of return on that investment eventually decreases. Important for understanding and optimizing resource allocation in product design and development.
Ostrich Effect
A cognitive bias where people avoid negative information or situations, preferring to remain uninformed or ignore problems. Important for understanding user behavior and designing systems that encourage proactive engagement.
Instrumental Value
The worth of something based on its ability to help achieve a desired end or goal. Useful for understanding and prioritizing design elements that contribute to user goals.
STEEPLE Framework
Social, Technological, Economic, Environmental, Political, Legal, and Ethical (STEEPLE) is an analysis tool that examines the factors influencing an organization. Crucial for comprehensive strategic planning and risk management in product design.
Moral Suasion
The act of persuading individuals or organizations to act in a certain way based on moral arguments or appeals. Useful for designing persuasive communications and ethical influence strategies.
Scarcity
A psychological principle where people place higher value on objects or opportunities that are perceived to be limited or rare. Important for understanding consumer behavior and designing marketing strategies that leverage perceived scarcity.
Restraint Bias
A cognitive bias where individuals overestimate their ability to control impulsive behavior, leading to overexposure to temptations. Important for designing systems that help users manage self-control and avoid overexposure to temptations.
Viability Risk
The risk that the product will not be financially or strategically sustainable for the business, potentially leading to a lack of support or profitability. Essential for ensuring that the product aligns with business goals and can be maintained and supported long-term.
80/20 Rule
A principle stating that 80% of effects come from 20% of causes, often used to prioritize tasks and identify key areas of focus. Essential for prioritizing tasks and focusing efforts on the most impactful areas.
LTV
Lifetime Value (LTV) is a metric that estimates the total revenue a business can expect from a single customer account throughout their relationship. Crucial for informing customer acquisition strategies, retention efforts, and overall business planning by providing insights into long-term customer profitability.
Feasibility Study
An analysis that assesses the practicality and potential success of a proposed project or system. Crucial for determining the viability and planning of new initiatives.
PESTEL Analysis
A strategic framework used to analyze the external macro-environmental factors affecting an organization: Political, Economic, Social, Technological, Environmental, and Legal. Essential for strategic planning and understanding market dynamics.
Zero Price Effect
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.
Chivas Regal Effect
The phenomenon where higher-priced products are perceived to be of higher quality, regardless of the actual quality. Useful for understanding consumer perceptions and designing effective pricing strategies.
Status Quo Bias
A cognitive bias that leads individuals to prefer things to remain the same rather than change, often resisting new options or changes. Crucial for understanding resistance to change and designing strategies to overcome it among users.
Bandwagon Effect
A psychological phenomenon where people do something primarily because others are doing it. Important for understanding social influences on user behavior and trends.
IoT
Internet of Things (IoT) refers to a network of interconnected physical devices embedded with electronics, software, sensors, and network connectivity, enabling them to collect and exchange data. Essential for creating smart, responsive environments and improving efficiency across various industries by enabling real-time monitoring, analysis, and automation.
Herd 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.
Chaos Theory
The study of dynamic systems that are highly sensitive to initial conditions, leading to unpredictable behavior. Important for recognizing and managing unpredictable elements in design and development processes.
Licensing Effect
A cognitive bias where people allow themselves to indulge after doing something positive, believing they have earned it. Important for understanding user behavior and designing systems that account for self-regulation.
Intention Action Gap
The discrepancy between what people intend to do and what they actually do. Crucial for designing interventions that bridge the gap between user intentions and actions.
Familiarity Bias
A cognitive bias where people prefer familiar things over unfamiliar ones, even if the unfamiliar options are objectively better. Useful for designing interfaces and products that leverage familiar elements to enhance user comfort.