Behavioral Economics
The study of psychology as it relates to the economic decision-making processes of individuals and institutions. Essential for understanding and influencing user decision-making and behavior in economic contexts.
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. Important for understanding how users make quick decisions and respond to design elements instinctively, aiding in the creation of intuitive and user-friendly interfaces.
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. Crucial for understanding and designing for quick decision-making processes.
Decision Staging
The process of breaking down decisions into smaller, manageable stages to simplify the decision-making process. Useful for guiding users through complex decisions in a structured manner.
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. Crucial for understanding and mitigating the risks of extreme decision-making in group settings.
Groupthink
A psychological phenomenon where the desire for harmony and conformity in a group results in irrational or dysfunctional decision-making. Crucial for recognizing and mitigating the risks of poor decision-making in teams.
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. Crucial for designing systems and processes that account for human cognitive limitations and decision-making processes.
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. Important for designing user experiences that accommodate decision-making under constraints.
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. Important for understanding group dynamics and improving the quality of collaborative decision-making among designers.
Priming
A psychological effect where exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention. Crucial for designing experiences that subtly guide user behavior and decision-making.
Affect Heuristic
A mental shortcut where current emotions influence decisions, often bypassing logic and reasoning. Important for understanding how emotions impact user decisions, aiding in more effective design and marketing.
Cold States
Emotional states where individuals are calm and rational, often contrasted with hot states where emotions run high. Important for understanding decision-making processes and designing experiences that accommodate both states.
Behavioral Finance
The study of how psychological influences affect financial behaviors and decision-making. Essential for understanding and influencing financial decision-making and behavior.
Regret Aversion
A tendency to avoid making decisions that might lead to regret, influencing risk-taking and decision-making behaviors. Crucial for understanding decision-making processes and designing systems that minimize regret.
Omission Bias
A cognitive bias where people judge harmful actions as worse, or less moral, than equally harmful omissions (inactions). Important for understanding user decision-making and designing systems that mitigate this bias.
Overconfidence Effect
A cognitive bias where a person's subjective confidence in their judgments is greater than their objective accuracy. Crucial for understanding user decision-making and designing systems that account for overconfidence.
Dual Process Theory
A framework suggesting there are two systems of thinking: System 1 (fast, automatic) and System 2 (slow, deliberate), influencing decision-making and behavior. Crucial for understanding how users process information and make decisions.
Certainty Effect
A cognitive bias where people give greater weight to outcomes that are certain compared to those that are merely probable. Important for designers to consider how users weigh certain outcomes more heavily in their decision-making.
Risk-as-Feelings Theory
A theory that emphasizes the role of emotions in risk perception and decision-making, where feelings about risk often diverge from cognitive assessments. Important for designing systems that account for emotional responses to risk and improve decision-making.
Focusing Effect
A cognitive bias where people place too much importance on one aspect of an event, causing errors in judgment. Important for understanding decision-making and designing interfaces that provide balanced information.
Hot Hand Fallacy
The mistaken belief that a person who has experienced success in a random event has a higher probability of further success in additional attempts. Crucial for understanding and designing around user decision-making biases.
Hindsight Bias
A cognitive bias where people perceive past events as having been more predictable than they actually were. Important for understanding and mitigating biases in user feedback and decision-making.
Optimism Bias
A cognitive bias that causes people to believe they are less likely to experience negative events and more likely to experience positive events than others. Crucial for understanding user risk perception and designing systems that account for unrealistic optimism.
Loss Aversion
A cognitive bias where the pain of losing is psychologically more powerful than the pleasure of gaining. Important for designing user experiences that account for and mitigate loss aversion.
Expectation Bias
A cognitive bias where individuals' expectations influence their perceptions and judgments. Relevant for understanding how expectations skew perceptions and decisions among users.
Pessimism Bias
A cognitive bias that causes people to overestimate the likelihood of negative outcomes. Important for understanding user risk perception and designing systems that address irrational pessimism.
MINDSPACE
Messenger, Incentives, Norms, Defaults, Salience, Priming, Affect, Commitment, and Ego (MINDSPACE) is a framework used to understand and influence behavior. Crucial for designing interventions that effectively influence user behavior.
Impact Bias
The tendency to overestimate the duration or intensity of the emotional impact of future events. Important for understanding user expectations and satisfaction.
Hard-Easy Effect
A cognitive bias where people overestimate the probability of success for difficult tasks and underestimate it for easy tasks. Useful for designers to understand user confidence and design
Intentionality Bias
The tendency to attribute intentional actions to others' behaviors, often overestimating their intent. Important for understanding and mitigating biases in user interactions and feedback.
Illusion of Control
The tendency for people to overestimate their ability to control events. Important for understanding user behavior and designing experiences that manage expectations.
Ambiguity Effect
A cognitive bias where decision-making is affected by the lack of information or uncertainty. Important for understanding and mitigating user decision-making biases due to uncertainty or lack of information.
Fast and Frugal Heuristics
Decision-making strategies that use simple heuristics to make quick, efficient, and satisfactory choices with limited information. Important for designing user experiences that support quick and efficient decision-making.
Sunk Cost Fallacy
The tendency for individuals to continue a behavior or endeavor as a result of previously invested resources (time, money, or effort) rather than future potential benefits. Important for understanding decision-making biases and designing systems that help users avoid irrational persistence.
Similar To Me Bias
A cognitive bias where individuals favor others who are perceived to be similar to themselves, affecting judgments and decision-making. Crucial for understanding biases in team dynamics and decision-making processes among designers.
Availability Heuristic
A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision. Crucial for understanding how people make decisions and the biases that influence their choices.
Anchoring
Anchoring (also known as Focalism) is a cognitive bias where individuals rely heavily on the first piece of information (the "anchor") when making decisions. Crucial for understanding and mitigating initial information's impact on user decision-making processes.
Availability Bias
A cognitive bias where people overestimate the importance of information that is readily available. Essential for designers to understand and mitigate how easily accessible information can disproportionately influence decisions.
Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains. Important for understanding decision-making behavior in users and designing systems that mitigate risk aversion.
Behavioral Game Theory
The study of strategic decision making, incorporating psychological insights into traditional game theory models. Useful for understanding complex user interactions and designing systems that account for strategic behavior.
Gambler’s Fallacy
A cognitive bias where individuals believe that past random events affect the probabilities of future random events. Important for designers to understand user decision-making biases related to randomness.
Subadditivity Effect
A cognitive bias where the total probability assigned to a set of events is less than the sum of the probabilities assigned to each event individually. Important for understanding how users estimate probabilities and make decisions under uncertainty.
Salience Bias
A cognitive bias where people focus on the most noticeable or prominent information while ignoring less conspicuous details. Important for understanding user decision-making and ensuring balanced presentation of information.
Illusory Correlation
The perception of a relationship between two variables when no such relationship exists. Crucial for understanding and avoiding biases in data interpretation and decision-making.
Attention Bias
The tendency for people's perception to be affected by their recurring thoughts at the time. Important for understanding how current thoughts influence user perception and decision-making.
Belief Perseverance
The tendency to cling to one's beliefs even in the face of contradictory evidence. Important for understanding resistance to change and designing interventions that address this bias.
Attribution Theory
A theory that explains how individuals determine the causes of behavior and events, including the distinction between internal and external attributions. Crucial for understanding user behavior and designing experiences that address both internal and external factors.
Authority Principle
A principle that suggests people are more likely to comply with requests or follow suggestions from authority figures. Important for designing persuasive experiences and understanding user compliance.
Decision Theory
The study of how individuals make choices among alternatives and the principles that guide these choices. Important for designing decision-making processes and interfaces that help users make informed choices.
Recognition Heuristic
A cognitive shortcut that relies on the recognition of one option over another to make a decision, often used when individuals have limited information. Crucial for designing interfaces and experiences that facilitate quick and effective decision-making.
Hick’s Law
A principle that states the time it takes to make a decision increases with the number and complexity of choices available. Crucial for designing user interfaces that minimize cognitive load and enhance decision-making efficiency.
Illusion of Validity
A cognitive bias where individuals overestimate the accuracy of their judgments, especially when they have a lot of information. Important for understanding and mitigating overconfidence in user decision-making.
Decision Fatigue
The deteriorating quality of decisions made by an individual after a long session of decision making, due to mental exhaustion. Important for designing interfaces that minimize cognitive load and simplify decision processes.
Information Bias
A cognitive bias where people seek out more information than is needed to make a decision, often leading to analysis paralysis. Crucial for designing decision-making processes that avoid information overload for users.
Decision Architecture
The design of environments in which people make decisions, influencing their choices and behaviors. Important for creating user experiences that guide decision-making processes effectively.
Intertemporal Choice
The study of how people make choices about what and how much to do at various points in time, often involving trade-offs between costs and benefits occurring at different times. Crucial for designing systems that account for delayed gratification and long-term planning.
Hyperbolic Discounting
A cognitive bias where people disproportionately prefer smaller, immediate rewards over larger, later rewards. Important for understanding and designing around user decision-making and reward structures.
Escalation of Commitment
A cognitive bias where individuals or organizations continue to invest in a failing project or decision due to the amount of resources already committed. Important for designers to recognize and mitigate their own risks of continuing unsuccessful initiatives.
Proportionality Bias
The tendency to believe that large or significant events must have large or significant causes. Important for understanding cognitive biases in decision-making and designing systems that present accurate causal relationships.
Recency Effect
A cognitive bias where individuals better remember the most recent information they have encountered, influencing decision-making and memory recall. Important for designing user experiences that leverage or mitigate the impact of recent information.