MATCHING

This concept explains why a consumer might be more willing to buy House A instead of House B if there is a third house shown to the consumer which is clearly worse than House A but hard to compare with House B.

This is a theory which combines behavioral phenomena with standard economic theory by claiming that preferences are easily influenced by arbitrary things initially, but afterward consumers mostlybehave according to standard economic theory.

This concept best explains why people are less willing to trade away an item, such as a mug,if they have feelings of ownership toward the mug.

This concept suggests that people tend to focus more heavily on the potential winning dollar amount of a gamble if they are asked to give a cash value of the gamble.

This concept explains why students who were first asked if they would pay $1000 for a year's worth of free Uber rides are willing to pay more than the students who were first asked if they would pay $10 for the rides.

This concept best explains why employers can encourage employees to invest more in their retirement savings accounts by increasing the default contribution level.

This result demonstrated that people tend to clearly violate expected utility theoryin specific ways, for example: they would choose gamble A over gamble B, but they would choose a one-fourth chance of gamble B over a one-fourth chance of gamble A

This describes the situation where someone believes it is more likely to be truethat a person is a feminist bank tellerthan it is for the person to be a teller.

This can explain why people believe a certain asset is likely to have a severe crash in its value if it is easy to recall a few high-profile instances where the asset had a crash in the past.

This concept can explain why someone might ignore the base-rate distribution of businesses when trying to decide how likely it is that a certain type of business will be the first to enter a particular market.

A. Compatibility Hypothesis

B. Anchoring

C. Endowment Effect

D. Fallacy of Preference

E. MentalizationEffect

F. Allais Paradox

G. Availability Heuristic

H. Conjunction Fallacy

I. Independence Heuristic

J. Standardization Effect

K. Decoy Effect

L. Representativeness Heuristic

M. Status Quo Bias

N. Similarity Effect

O. Arbitrary Coherence