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Behavioral Economics
The Effects of Self-Serving Bias at The Workplace
Our minds look for the meaning behind every good and bad thing that happens in life. We prefer positive events...
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Sunk Cost Fallacy and Failing Initiatives
The sunk cost fallacy is our habit of continuing a project we invested in, even when the downsides outweigh the...
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Bounded Rationality – Limitations and Examples
Humans are primarily rational, and we want to believe that we make decisions based on logic and reason. But the...
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The Psychological Reasoning Behind Barnum Effect
Introduction When you crack open a fortune cookie, the message inside is likely heartwarming or motivating, like, "You are almost...
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Representativeness Heuristic and Decision-Making
Decision-making is a complex process that determines our daily lives, from choosing our meals, our significant others, our purchases, and...
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How Does Anchoring Bias Affect Decision-Making?
Ask anyone about their life expectancy: how long do they think they'll live? The most common answers involve parents and...
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Herd Mentality: Why Do We Want To Do What Everyone Else Does?
Introduction There are people, and then there are sheeple, which are easily influenced and conform to the majority opinion. People...
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What is Cognitive Dissonance and How to Avoid the Pitfalls?
Decision making is an integral part of organizations. Taking the right decisions at the right time every time plays a...
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What is Confirmation Bias and How Does it Work?
Good decisions play a key role in the long-term success and growth of the organization. But good decision making requires...
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Psychology Behind Availability Heuristic and Decision Making
In a fast moving world, business decisions need to be taken quickly and correctly on a consistent basis for long-term...
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Hindsight Bias, Assumptions and Predictability
Running an organization is all about making choices and making decisions. When decisions are taken at the higher echelons of...
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What is IKEA Effect?
How can you leverage the IKEA effect to benefit your business? Participation and initiative from the self are key driving...
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How to Reverse and Solve the Ratchet Effect
Introduction A ratchet is any mechanism that allows progressive movement in one direction. Named after the ratcheting form of a...
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The Commitment Effect & Its Role in Business
What is the Commitment Effect? When you make a decision on an idea, and then a more efficient, innovative alternative...
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Halo effect and its role in business
Why do customers return to the same brand over and over? Why do managers select one employee above the others...
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Time Discounting & Employee Rewards
Human Behavior and Business Human behavior plays a bigger role in business than you might think. Behavioral economics is the...
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The Law of Reciprocity in Business
Human nature has a massive impact on all businesses, whether it is apparent or not. At times, human beings make...
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Deliberate ignorance in the Business Setting
The first line of Aristotle's Metaphysics starts with a seemingly obvious truth "All men by nature want to know". According...
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Decision Fatigue
Decision Fatigue refers to the mental exhaustion that is caused after rigorous decision-making sessions. It addresses how the quality of...
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The IKEA Effect and OKR: Boosting Employee Engagement
More and more, employee engagement has come to be considered one of the most important pillars of successful corporate strategy....
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Behavioral Economics and Employee Engagement
How many of us have landed our ideal dream job? According to the Gallup report, only 33% of the US...
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The Role Loss Aversion Plays in the Goal Setting Process
Loss aversion as its name implies occurs when the psychological impact of losing something outweighs the pleasure of gaining. The...
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