Personality Theory, Traits, Heuristics and Biases

Flashcards covering key concepts related to personality theories, traits affecting behaviors such as spending, and various heuristics and biases in decision-making.

Personality

Evolved from the Latin word 'persona', referring to the consistent patterns of behavior and attitudes displayed by an individual.

Trait Theory

A psychological theory that suggests personality traits are stable characteristics that influence behavior.

Behaviorism

A theory that emphasizes the role of the environment in shaping human behavior, asserting that behavior is a result of environmental stimuli.

Interactionism

A theory that posits that behavior is a function of both the person's traits and the environment they are in.

Spendthrift

A person who spends money freely and irresponsibly.

Tightwad

A person who is reluctant to spend money, experiencing anticipatory pain at the thought of paying.

Frugality

A consumer lifestyle trait characterized by restraint in acquiring and resourceful use of economic goods to achieve long-term goals.

Delaying Gratification

The ability to forgo immediate satisfaction in favor of long-term rewards.

Familiarity Bias

The tendency for people to prefer things they have more exposure to or experience with.

Confirmation Bias

The inclination to search for or interpret information that confirms one's preconceptions, while ignoring disconfirmatory evidence.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have foreseen or predicted it.

Mental Accounting

A cognitive process where individuals categorize, evaluate, and keep track of financial activities into distinct accounts.

Overconfidence

The tendency for people to overestimate their knowledge, abilities, and the accuracy of their information.

Winner's Curse

A phenomenon in auctions where the winning bidder tends to pay more than the item's intrinsic value due to overestimation of its worth.

Regression to the Mean

The assumption that extreme events are likely to be followed by events that are closer to the average.

Salience Bias

The tendency to judge events based on how easily they come to mind, often influenced by the vividness or recency of those events.

Insufficient Anchor Adjustment

The failure to adequately adjust an initial value when making estimates or decisions.