Subadditivity Effect
A cognitive bias where the total probability assigned to a set of events is less than the sum of the probabilities assigned to each event individually.
98 topics found for
“economic psychology”
Gambler’s Fallacy
A cognitive bias where individuals believe that past random events affect the probabilities of future random events.
Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains.
Behavioral Game Theory
The study of strategic decision making, incorporating psychological insights into traditional game theory models.
Loss Aversion
A cognitive bias where the pain of losing is psychologically more powerful than the pleasure of gaining.
Prospect Theory
A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.
Bandwagon Effect
A psychological phenomenon where people do something primarily because others are doing it.
Scarcity Principle
The economic theory that suggests limited availability of a resource increases its value, influencing decision-making and behavior.
Scarcity
A psychological principle where people place higher value on objects or opportunities that are perceived to be limited or rare.