Tag

behavioral-economics

Explore 5 cognitive biases related to this topic.

Choice Overload Effect

10 min read

The choice overload effect occurs when having too many options makes it harder to decide, reduces satisfaction, or leads people to avoid choosing at all.

Cognitive Biases / Choice and complexity

/ Paradox of Choice

Mental Accounting

10 min read

Mental accounting is the tendency to treat money differently depending on where it came from or how we label it, rather than viewing all funds as interchangeable.

Cognitive Biases / Financial framing

/ Psychological budgeting

Denomination Effect

8 min read

The denomination effect is the tendency to spend money more easily when it is in smaller units (like coins or small bills) than when it is in larger units.

Cognitive Biases / Money perception

/ Small change effect

Money Illusion

10 min read

Money illusion is the tendency to think in terms of nominal currency values rather than real purchasing power adjusted for inflation.

Cognitive Biases / Economic perception

/ Nominal thinking

Endowment Effect

10 min read

The endowment effect is our tendency to value things we own more highly than identical things we do not own, simply because they are ours.

Cognitive Biases / Valuation and ownership

/ Ownership Bias