Behavioral economics - combines economics and psychology to study why people behave the way they do in the real world, Cognitive Bias - An error in the way we think that can influence our decisions, Loss aversion - tend to feel the effect of losses more than the effect of similar gains, Endowment effect -  describes how people tend to value items that they own more highly than they would if they did not belong to them., Sunk cost - describes our tendency to follow through on an endeavor if we have already invested time, effort, or money into it, whether or not the current costs outweigh the benefits., Herd mentality or Bandwagon - refers to our habit of adopting certain behaviors or beliefs because many other people do the same., Fear of missing out (FOMO) - tendency to feel anxiety or fear that an exciting or interesting event may currently be happening elsewhere , Confirmation Bias - tendency to search for information that support our preconceptions and to ignore or distort contradictory evidence, Overconfidence - tendency people have to be more confident in their own abilities, Hedonic adaptation - tendency to return to baseline level of happiness regardless of whether you go through positive or negative experience event,

Behavioral Economics

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