Bias Definitions and Implications

These flashcards cover key concepts and definitions related to biases in decision-making.

Self-Control Bias

A bias in which people fail to act in pursuit of their long-term goals in favor of short-term satisfaction.

Endowment Bias

An emotional bias where individuals value an asset more when they own it than when they do not.

Loss-Aversion Bias

The tendency to strongly prefer avoiding losses to achieving gains.

Overconfidence bias

When people demonstrate unwarranted faith in their own abilities

Representative bias

Attributes one positive trait as being representative of an overall positive investment. Associated with halo effect