Overview
Behavioral economics plays a crucial role in understanding how individuals make decisions during crises. By examining cognitive biases, loss aversion, and the impact of social norms, we can better predict and influence behavior in high-stress situations. This knowledge is essential for designing eff...
Key Terms
Example: Confirmation bias leads people to favor information that confirms their existing beliefs.
Example: People are more upset about losing $100 than they are happy about gaining $100.
Example: Placing healthy food at eye level in a cafeteria to promote better eating habits.
Example: People are more likely to recycle if they believe their peers are doing it.
Example: A person may make poor choices about food after a long day of work.
Example: Describing a surgery as having a 90% success rate versus a 10% failure rate.