Category 1
The tendency to make decisions about a current situation based on what resources you have already invested in the situation
Sunk Cost Fallacy
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
FOMO (Fear Of Missing Out)
The tendency to put more value on things you already own
Endowment Effect
The tendency to conform to the behaviors and beliefs of the people around you
Herd Mentality
The tendency people have to be more confident in their own abilities
Overconfidence Bias
The tendency to regard losses as considerably more important than gains of comparable magnitude
Loss Aversion
Overestimation
When a person believes they are better at something than they actually are
Overestimation
Costs that have already been incurred and cannot be recovered
Sunk Costs
When a person mistakenly believes they are better than others
Overplacement
Social Media Marketing
The use of social media platforms and websites to promote a product or service
Social Media Marketing
Our tendency to favor action over inaction
Action Bias
A cognitive bias that causes us to rely heavily on the first piece of information we are given about a topic
The Anchoring Bias
Our habit of adopting certain behaviors or beliefs because many other people do the same.
Bandwagon Effect
The psychological discomfort we experience when we hold two or more conflicting beliefs, attitudes, or values simultaneously. To resolve this tension, we often change, justify, or ignore the conflicting information.
Cognitive Dissonance
Our tendency to remain committed to our past behaviors, particularly those exhibited publicly, even if they do not have desirable outcomes.
Commitment Bias
Confirmation Bias
The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence
Confirmation Bias
The tendency to forget information that is readily available through search engines like Google.
Google Effect
The halo effect is a cognitive bias that claims that positive impressions of people, brands, and products in one area positively influence our feelings in another area.
Halo Effect
Mental shortcuts that can facilitate problem-solving and probability judgments. These strategies are generalizations, or rules-of-thumb, that reduce cognitive load. They can be effective for making immediate judgments, however, they often result in irrational or inaccurate conclusions.
Heuristics
When a person has an exaggerated certainty that an answer is correct.
Over precision
The application psychological insights into human behavior and emotions to explain economic decision making
Behavioral Economics
A strategy used to combat loss aversion by imagining that overnight something you own has been replaced with cash, then determining whether you would prefer to keep the cash or buy the item back
Overnight Test
The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event
Hedonic Adaptation
A systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects the decisions and judgments that they make.
Cognitive Bias
Study of how people, businesses, and governments use limited resources to satisfy their unlimited wants and needs.
Economics