Definitions 1
how people act about money
behavioral economics
the fear of not being included or being part of something enjoyable or interesting everyone else is doing
FOMO (fear of missing out)
when you “sleep on it” before buying something
overnight test
The computer you want to buy seems overpriced, but there's only 1 left in stock!!! You better buy it!
FOMO (Fear of Missing Out)
when our brain takes shortcuts based on the info we have and is sometimes wrong
cognitive bias
when you want to do what other people are doing, even when it’s bad
herd mentality
when you think you are better at things than you are
overestimation
Racism
Cognitive Bias
when people look for information that shows what they already believe
confirmation bias
the pain of losing something is twice as powerful as the pleasure of gaining something
loss aversion
belief that you are better than everyone else
overplacement
When you would rather get 5 extra credit points at the end of the tri if you turn in all your homework than lose 5 extra credit points if you DON'T turn in all your homework.
Loss Aversion
when someone places something they own higher in value than the same thing when they don't own it.
endowment effect
when people think they are smarter than they are
overconfidence bias
money that has already been spent and you can’t get back
sunk cost
You're lost at Disney World when you try to leave at the end of the day, so you follow the crowd and end up at a dead end.
Herd Mentality
even though we experience major events in life they dont change our happiness overall
hedonic adaptation
when you're too sure you know the truth
overprecision
when you keep spending time and/or money on something because you already spent time and/or money on it
sunk cost fallacy
You're convinced you failed the Chemistry test, but then when you get it back, you got a C.
Overprecision
What 2 words did Ms Noel accidentally leave off of your dictionary?
Sunk Cost & Sunk Cost Fallacy