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If a loan has a probability of not being paid back, the interest rate will:
Consistent Preferences
A situation where an individual's choices or tastes remain stable over time, showing a reliable pattern of preference.
Confirmation Bias
The habit of looking for, decoding, valuing, and recalling details that support one’s established views or conjectures.
Social Comparison
The process of evaluating oneself by comparison with others, often in terms of abilities or social standing.
Causal Attribution
The process of inferring the causes of events or behaviors, which can influence how individuals interpret and respond to the world around them.
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