Prospect theory

discipline of economy studying the effects of psychological, cognitive, emotional, cultural and social factors on decisions

thumb|Situations often arise wherein a decision must be made when the results of each possible choice are uncertain.

an effect where an individual depends too heavily on an initial piece of information when making decisions

tendency and mental shortcut of preferring an item with more available information

theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979

set of concepts and theoretical perspectives in social sciences on how individuals, groups, and societies, organize, perceive, and communicate about reality

tendency to perceive past events as more predictable than they actually were at the time

2011 non-fiction work by Daniel Kahneman

cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations

an emotional bias, which is a preference for the current state of affairs as opposed to a change

people's tendency to prefer avoiding losses to acquiring equivalent gains, a behavior first identified by Amos Tversky and Daniel Kahneman

tendency to believe false information when repeated

tool for assisting judgement in uncertainty

the finding that people are more likely to retain an object they already own than to acquire that same object when they do not own it

concept in behavioral economics that predictions about how much time will be needed to complete a future task display an optimism bias and underestimate the time needed

economics concept

In economics, finance, and psychology, risk-seeking (also called risk-loving or risk preference) refers to a behavioral tendency to prefer uncertain options with potentially higher rewards over safer alternatives with lower expected value. In other words, risk-seeking individuals derive greater satisfaction or perceived utility from taking chances, even when the probable outcome may be less favorable. This is a big issue seen in stock trading, for example, in where people take the risk to either hold or sell their stocks depending on past market trends.

propensity for humans to favor suggestions from automated decision-making systems and to ignore contradictory information made without automation

preference that is neither risk averse nor risk seeking, so a party with such risk neutral preference is indifferent between choices with equal expected payoffs even if one choice is riskier

psychological effect