Examlex
People clap more loudly when they are part of a small audience than when they are part of a large audience,illustrating the phenomenon of:
Arbitrage
The practice of taking advantage of a price difference between two or more markets, buying low and selling high to profit from the temporary difference.
Overconfidence
A cognitive bias characterized by an individual's unjustifiable faith in their own intuitive reasoning, judgments, or cognitive abilities.
Financial Wisdom
The knowledge and understanding necessary for making prudent financial decisions, encompassing personal finance, investing, budgeting, and saving strategies.
Representativeness Heuristic
A cognitive shortcut used in decision-making, where the likelihood of an event is judged by how much it resembles existing stereotypes.
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