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The bus is fairly crowded when you get on. You make a rapid evaluation and quickly decide to sit next to a well-dressed senior citizen because you think that it will be safer to sit next to him than some of the other people on the bus. This example illustrates:
Loss Aversion
The strong tendency to regard losses as considerably more important than gains of comparable magnitude—and, with this, a tendency to take steps (including risky steps) to avoid possible loss.
Affective Forecasting
Predicting one’s own emotional response to upcoming events.
Affective Forecasting
The process by which individuals predict their future emotional states in response to events or decisions.
Judgment and Reasoning
The cognitive processes involved in forming opinions, making decisions, and solving problems.
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