Behavioral Economics
Behavioral Economics
The subfield of economics that applies psychological insights into human behavior and to
explain economic decision making
Cognitive Bias
A subconscious error in thinking that leads to irrational decision making
Confirmation Bias
The tendency to search for information that supports our preconceptions and to ignore or
distort contradictory evidence
Endowment Effect
The tendency to put more value on things you already own
FOMO (Fear of Missing Out)
The tendency to feel anxiety/fear that an exciting or interesting event may currently be
happening elsewhere, often aroused by posts seen on a social media website
Hedonic Adaptation
The tendency to return to a baseline level of happiness regardless of whether you go through a
positive or negative experience or event
Herd Mentality
The tendency to conform to the behaviors and beliefs of the people around you
Behavioral Economics
The subfield of economics that applies psychological insights into human behavior and to
explain economic decision making
Cognitive Bias
A subconscious error in thinking that leads to irrational decision making
Confirmation Bias
The tendency to search for information that supports our preconceptions and to ignore or
distort contradictory evidence
Endowment Effect
The tendency to put more value on things you already own
FOMO (Fear of Missing Out)
The tendency to feel anxiety/fear that an exciting or interesting event may currently be
happening elsewhere, often aroused by posts seen on a social media website
Hedonic Adaptation
The tendency to return to a baseline level of happiness regardless of whether you go through a
positive or negative experience or event
Herd Mentality
The tendency to conform to the behaviors and beliefs of the people around you
