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Behavioral Economics
Behavioral economics studies how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.
Availability Heuristic
An intellectual quick-step that employs readily recalled instances when contemplating a certain topic, notion, strategy, or judgment.
Endowment Effect
The phenomenon in which individuals value an owned object higher than its market value simply because they own it.
Prospect Theory
Prospect Theory is a behavioral economic theory that describes how people choose between probabilistic alternatives involving risk, where the probabilities of outcomes are known.
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