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Behavioral Economics

62 articles
Bias-Affect
Behavioral Economics
7 min read · November 11, 2022

How Does Anchoring Bias Affect Decision-Making?

TL;DR Herd mentality is the human tendency to follow the crowd instead of making independent decisions. Driven by fear, uncertainty,…

Bastin Gerald Bastin Gerald
Herd-Mentality
Behavioral Economics
8 min read · November 11, 2022

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…

Bastin Gerald Bastin Gerald
What-is-Cognitive
Behavioral Economics
11 min read · November 4, 2022

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…

Bastin Gerald Bastin Gerald
What-is-Confirmation-Bias
Behavioral Economics
10 min read · November 4, 2022

What is Confirmation Bias and How Does it Work?

TL;DR Confirmation bias is the tendency to seek, interpret, and remember information that supports existing beliefs while ignoring contradictory evidence.…

Bastin Gerald Bastin Gerald
Psychology-Behind-Availability
Behavioral Economics
10 min read · October 28, 2022

Psychology Behind Availability Heuristic and Decision Making

TL;DR The availability heuristic is a cognitive bias where people make decisions based on information that comes to mind quickly—often…

Bastin Gerald Bastin Gerald
Psychology-Behind-Availability
Behavioral Economics
9 min read · October 28, 2022

Hindsight Bias, Assumptions and Predictability

TL;DR Hindsight bias tricks us into believing past outcomes were predictable, even when they weren’t. In organizations, this creates overconfidence,…

Bastin Gerald Bastin Gerald
IKEA-Effects
Behavioral Economics
8 min read · September 29, 2022

What is IKEA Effect?

TL;DR The IKEA effect is a cognitive bias where people place higher value on things they help create. In organizations,…

Bastin Gerald Bastin Gerald
what-is-ratchet-effect
Behavioral Economics
6 min read · August 30, 2022

What is Ratchet Effect? Explained with Examples

Introduction A ratchet is any mechanism that allows progressive movement in one direction. Named after the ratcheting form of a…

Bastin Gerald Bastin Gerald
The Commitment Effect & Its Role in Business
Behavioral Economics
5 min read · May 31, 2021

The Commitment Effect & Its Role in Business

TL;DR The commitment effect explains why people stick to decisions, goals, or beliefs even when better alternatives emerge. In business,…

Bastin Gerald Bastin Gerald
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