Overview
Cognitive economics merges insights from psychology and economics to understand how people make decisions. It highlights that human behavior is often irrational, influenced by biases and emotions, which can lead to suboptimal economic choices. By studying these patterns, we can better predict market...
Key Terms
Example: Overconfidence in one's investment choices.
Example: Placing healthy foods at eye level in a cafeteria.
Example: Bullish sentiment leads to rising stock prices.
Example: Investors buying stocks because others are doing so.
Example: Choosing the cheapest option when shopping.
Example: Feeling guilty after making an impulsive purchase.
Related Topics
Key Concepts
Behavioral BiasesDecision MakingMarket PsychologyNudges