utility and behavioural economics Flashcards
1
Q
law of diminishing utility
A
as quantity consumed increases the marginal utility derived from each extra unit decreases
2
Q
where is total utility maximised
A
MU = 0
3
Q
anchoring
A
value is imprinted on mind as reference to compare
4
Q
social norms
A
decisions influenced on whats socially acceptable
5
Q
availability bias
A
