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.
98 topics found for
“economic psychology”
Overconfidence Effect
A cognitive bias where a person's subjective confidence in their judgments is greater than their objective accuracy.
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.
System One
A mode of thinking, derived from Dual Process Theory, that is fast, automatic, and intuitive, often relying on heuristics and immediate impressions.
Chivas Regal Effect
The phenomenon where higher-priced products are perceived to be of higher quality, regardless of the actual quality.
Certainty Effect
A cognitive bias where people give greater weight to outcomes that are certain compared to those that are merely probable.
Bundling Bias
A cognitive bias where individuals evaluate the value of bundled items differently than they would if the items were evaluated separately.
BeSci
Behavioral Science (BeSci) is the study of human behavior through systematic analysis and investigation.
Licensing Effect
A cognitive bias where people allow themselves to indulge after doing something positive, believing they have earned it.