Post by account_disabled on Dec 10, 2023 8:58:33 GMT
Nobel laureate Richard Thaler ( ), one of the founders of modern behavioral economics, developed this concept to explain how people view value in relative rather than absolute terms. Cognitive Bias When people draw conclusions based on personal experiences, beliefs, or preferences, they express cognitive biases. This means that their decisions are based on their perception of reality rather than a rational reasoning process.
For example, someone who believes that the color blue will bring them Phone Number List good luck may gravitate toward blue models when buying a car, rather than focusing on other factors such as price, size, and features. There are many different types of cognitive biases, but some of the more common ones are: Confirmation bias, where a person interprets or remembers information in a way that supports their existing beliefs (for example, a shopper with a preferred brand recalls only positive things about that brand reported.
The sunk cost fallacy, where a person continues to of the risk because they have already invested resources (e.g. someone renews a gym membership after not going to the gym in months) The overconfidence effect, where people Overestimating one's own skills and ability to make good decisions (e.g., someone with insufficient technical knowledge trying to solve a software problem instead of contacting the vendor) Herd mentality This is the view that people make decisions based on the actions of others. This often manifests as a person making the same choices as everyone around them, whether or not it is a rational choice.
For example, someone who believes that the color blue will bring them Phone Number List good luck may gravitate toward blue models when buying a car, rather than focusing on other factors such as price, size, and features. There are many different types of cognitive biases, but some of the more common ones are: Confirmation bias, where a person interprets or remembers information in a way that supports their existing beliefs (for example, a shopper with a preferred brand recalls only positive things about that brand reported.
The sunk cost fallacy, where a person continues to of the risk because they have already invested resources (e.g. someone renews a gym membership after not going to the gym in months) The overconfidence effect, where people Overestimating one's own skills and ability to make good decisions (e.g., someone with insufficient technical knowledge trying to solve a software problem instead of contacting the vendor) Herd mentality This is the view that people make decisions based on the actions of others. This often manifests as a person making the same choices as everyone around them, whether or not it is a rational choice.