Mental Accounting
A behavioral economics concept where people categorize and treat money differently depending on its source or intended use.
437 topics found for
“behavior understanding”
Theory of Reasoned Action
A psychological theory that predicts an individual's behavior based on their intention, which is influenced by their attitudes and subjective norms.
Risk Compensation
The theory that people adjust their behavior in response to the perceived level of risk, often taking more risks when they feel more protected.
Allais Paradox
A decision-making paradox that shows people's preferences can violate the expected utility theory, highlighting irrational behavior.
Homo Economicus
A theoretical concept in economics that portrays humans as rational and self-interested agents who aim to maximize their utility.
Licensing Effect
A cognitive bias where people allow themselves to indulge after doing something positive, believing they have earned it.
Prospect Theory
A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.
Projection Bias
The tendency to overestimate how much our future preferences and behaviors will align with our current preferences and behaviors.
Reward Substitution
A strategy where less immediate or tangible rewards are substituted with more immediate or tangible ones to encourage desired behaviors.