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Organizational Behavior: Core Concepts
Behavioral Economics: Core Concepts
An introduction to the key concepts of behavioral economics, which explains how psychological factors influence the economic decisions of individuals and institutions. ✨
Article Points:
1
Humans are not always rational; our decisions are shaped by predictable cognitive biases.
2
Prospect Theory states that the pain of a loss is felt more strongly than the pleasure of an equivalent gain (Loss Aversion).
3
Anchoring is our tendency to rely on the first piece of information we receive.
4
Framing shows that the presentation of information affects our choices.
5
Mental Accounting is the habit of separating money into different categories.
6
These concepts help explain real-world behavior that traditional economics cannot.
Source:
Behavioral Economics: Core Concepts
Behavioral Economics: Core Concepts
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Source:
Behavioral Economics: Core Concepts
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