Tag

money

Explore 3 cognitive biases related to this topic.

Temporal Discounting

2 min read

Temporal discounting (or hyperbolic discounting) is the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs.

Cognitive Biases

/ Hyperbolic discounting

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