Behavioral Economics
The study of psychology as it relates to the economic decision-making processes of individuals and institutions.
98 topics found for
“economic psychology”
Behavioral Finance
The study of how psychological influences affect financial behaviors and decision-making.
Paradox of Value
An economic theory that explains why some necessities, such as water, are less expensive than non-essentials, like diamonds, despite their greater utility.
Mental Accounting
A behavioral economics concept where people categorize and treat money differently depending on its source or intended use.
Negativity Effect
The tendency for negative information to have a greater impact on one's psychological state and processes than neutral or positive information.
Pain Of Paying
The psychological discomfort experienced when parting with money, influenced by the payment method and context.
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.
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.
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.