Behavioral Finance
The study of how psychological influences affect financial behaviors and decision-making.
19 topics found for
“investment behavior”
Behavioral Targeting
A marketing strategy that uses user behavior data to deliver personalized advertisements and content.
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.
Irrational Escalation
The phenomenon where people continue a failing course of action due to the amount of resources already invested.
Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains.
IKEA Effect
The tendency for people to value products more highly if they have put effort into assembling them.
Hook Model
A framework for designing habit-forming products that includes four phases: Trigger, Action, Variable Reward, and Investment.
Escalation of Commitment
A cognitive bias where individuals or organizations continue to invest in a failing project or decision due to the amount of resources already committed.
Hot Hand Fallacy
The mistaken belief that a person who has experienced success in a random event has a higher probability of further success in additional attempts.