Reference Dependence
A cognitive bias where individuals evaluate outcomes relative to a reference point rather than on an absolute scale.
30 topics found for
“financial 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.
KPI
Key Performance Indicators (KPIs) are quantifiable measures used to evaluate the success of an organization, employee, or project in meeting objectives for performance.
Nudging
The act of designing and implementing subtle interventions to influence behavior in a predictable way.
Irrational Escalation
The phenomenon where people continue a failing course of action due to the amount of resources already invested.
Dual Self Model
A behavioral economics model that explains decision-making as a conflict between a present-oriented "doer" and a future-oriented "planner".
Naive Allocation
A heuristic where individuals evenly distribute resources across all options, regardless of their specific needs or potential.
Illusory Correlation
The perception of a relationship between two variables when no such relationship exists.