Behavioural economics

Bounded Rationality

The idea that individuals aim to make rational decisions but are limited by cognitive ability

Bounded Self-Control

When individuals lack the self-discipline to act in their long-term interest

Heuristics

Mental shortcuts or “rules of thumb” used to simplify complex decision-making

Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (the "anchor") when making decisions.

Social Norms

Behavioural expectations shared by a group or society that influence individuals’ choices

Availability Bias

When individuals judge the likelihood of events based on how easily examples come to mind

Framing

How the way a choice is presented (e.g.

Loss Aversion

A bias where the pain of losing is psychologically stronger than the pleasure of an equivalent gain.

Herding Behaviour

When individuals copy the actions of a group

Choice Architecture

The design and layout of different options in a decision-making environment

Altruism

When individuals act out of concern for others’ well-being

Nudges

Small interventions that steer people towards better decisions without restricting freedom of choice.

Default Choice

The option automatically selected if no active decision is made; often influences outcomes due to inertia.

Restricted Choice

When individuals are presented with a limited set of options to simplify decision-making and avoid overload.

Mandated Choice

A policy requiring individuals to make an explicit decision rather than defaulting or opting out (e.g.