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Dependencies are crucial for
Opportunity Costs
The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.
Loss Aversion
Oversensitivity to loss, leading to an unwillingness to recognize a loss and move on.
Mental Accounting
The habit of mentally assigning dollars to different accounts so that some dollars are worth more than others.
Overconfidence
The phenomenon where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.
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