Behavioural Economics: A closer Look At Decision Making - chapter 8

time inconsistent

A(n) ________ person is neither irrational or rational.

Time inconsistency

when people change their minds about what they want simply because of the timing of the decision.

implicit cost of ownership

The ________ is the cognitive bias documented by behavioural economists that leads people to value things more once they possess them.

commitment device

strategy or tool that allows people to place restrictions on later choices now so they can make better decisions in the future

sunk costs

costs that have already been incurred and cannot be recovered or refunded

Fungible

easily exchangeable or substitutable

overvalue

If the benefit you get from a good is concrete and immediate, you will ________ it

undervalue

If the benefit you get from a good is abstract and distant good, you will ________ it

undervaluing

People are prone to ________ opportunity costs that are non-monetary

true

(T/F) Are commodities fungible?