decision making

6 articles · All tags

• The Framing Effect
  Logically identical choices made differently depending on wording: gains invite caution, losses invite risk.
• Anchoring
  How an initial number — even an arbitrary one — pulls later numerical judgments toward itself, and why expertise barely helps.
• Present Bias and Hyperbolic Discounting
  Why the same one-day delay looms larger today than next month: preference reversals, β-δ models, and commitment devices.
• Mental Accounting
  Thaler's finding that people partition money into labeled mental accounts and spend, save, and regret differently by account.
• Opportunity Cost
  The value of the best alternative forgone when making a choice — the fundamental concept of economic scarcity.
• Loss Aversion
  The behavioral-economics finding that losses are felt more strongly than equivalent gains, formalized in prospect theory.