Scarcity Principle
The economic theory that suggests limited availability of a resource increases its value, influencing decision-making and behavior.
109 topics found for
“economic decision-making”
Discounted Utility
A concept in behavioral economics that describes how future benefits are perceived as less valuable than immediate ones.
CoD
Cost of Delay (CoD) is a metric that quantifies the economic impact of delaying a project, feature, or task.
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.
Representativeness
Representativeness is a heuristic in decision-making where individuals judge the probability of an event based on how much it resembles a typical case.
Fast and Frugal Heuristics
Decision-making strategies that use simple heuristics to make quick, efficient, and satisfactory choices with limited information.
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.
Dual Self Model
A behavioral economics model that explains decision-making as a conflict between a present-oriented "doer" and a future-oriented "planner".
Homo Economicus
A theoretical concept in economics that portrays humans as rational and self-interested agents who aim to maximize their utility.