2- Individual economic decision making.

Altruism

The selfless and disinterested concern towards the well being of others.

Anchoring bias

Individuals tend to rely on the first piece of information they are givern.

Asymmetric information

When one party has more information that the other in aneconomic transaction.

Availability bias

Individuals base the likeliness of future events occurring on past events.

Behavioural economics

Branch of economics that incorporates psycholgical insights to understand human economic decision making.

Bounded rationality

Individual's inability to make rational economic decision making due to inability to control themselves.

Choice architecture

A framework illustrating the effects of presenting choices in different ways.

Economic man (homo economicus)

A hypothetical person who behaves in exact accordance with their rational self-interest.

Heuristics

Rules of thumb.

Perfect information

When both buyers and sellers have full knowledge of goods and services in a market.

Risk aversion

Individuals tend to value losses more han commensurate gains.

Symmetric information

Where consumers and producers have sufficient information to make rational decisions.

Utility

Benefit, wellbeing, welfare or satisfaction gained from consumption of a good or service.

Utility maximisation

When consumers aim to make their personal welfare as high as possible.