factors affecting behavioral economics Flashcards
1
Q
factors affecting behavioral economics (5)
A
bounded rationality
choice architecture
cognitive bias
discrimination
herd mentality
2
Q
bounded rationality
A
individuals tend to make INFORMED decisions based on their limited knowledge.
3
Q
choice architecture
A
presentation of goods has an impact on people’s decision
4
Q
cognitive bias
A
individuals make choices based on their beliefs & values and how they interpret the world
5
Q
discrimination
A
individuals tend to reject choices based on their dislike
6
Q
Herd mentality
A
people like a sense of belonging; so people spend money they would not otherwise spend to fit in.
