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Overconfidence Effect
A mental distortion in which a person's belief in their own decision-making abilities exceeds the actual precision of those decisions.
Behavioral Economics
Investigating the influence of psychological, cognitive, emotional, cultural, and social factors on individuals' and institutions' economic decision-making falls within this segment of economics.
Cognitive Biases
Systematic patterns of deviation from norm or rationality in judgment, whereby individuals create their own "subjective social reality."
Behavioral Economics
A field that combines insights from psychology and economics to explore how people make decisions, often deviating from the assumptions of traditional economic theory.
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