Behavioral Economics
The study of psychology as it relates to the economic decision-making processes of individuals and institutions.
148 topics found for
“decision-making psychology”
System One
A mode of thinking, derived from Dual Process Theory, that is fast, automatic, and intuitive, often relying on heuristics and immediate impressions.
Take the Best Heuristic
A decision-making rule where individuals choose the option with the highest perceived value based on the first good reason that comes to mind, ignoring other information.
Decision Staging
The process of breaking down decisions into smaller, manageable stages to simplify the decision-making process.
Groupshift
A phenomenon where group members make decisions that are more extreme than the initial inclination of its members due to group discussions and interactions.
Groupthink
A psychological phenomenon where the desire for harmony and conformity in a group results in irrational or dysfunctional decision-making.
Bounded Rationality
A concept that humans make decisions within the limits of their knowledge, cognitive capacity, and available time, leading to satisficing rather than optimal solutions.
Satisficing
A decision-making strategy that involves choosing an option that meets the minimum requirements rather than seeking the optimal solution, balancing effort and outcome.
Shared Information Bias
A cognitive bias where group members tend to discuss information that everyone already knows rather than sharing unique information, leading to less effective decision-making.