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Why Are Process Decisions Important

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Why are process decisions important?


Definitions:

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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