An individual’s preference to maintain their current state even if a change in their circumstances would provide better options.
The inclination to value and pay more for an item that is already in possession than for an item that has yet to be attained.
A tendency of individuals to be more attuned to losses than to gains.
A predisposition to accepting information that confirms one’s opinions or conclusions rather than information that is contradictory.
Money is mentally allocated to several “accounts” such as clothing or entertainment rather than being perceived as fungible.
The fact that individuals only have a certain amount of willpower at any given time and that willpower needs to be replenished periodically.
To value benefits that are reaped now more than benefits reaped in the future. Consequently, costs that are paid in the future are not felt as deeply as costs that are paid now.
The presence of too many choices for a particular decision, making it difficult to evaluate and decide.
The presence of too much information in the environment, preventing the individual from evaluating and making a good decision.
Information that readily comes to mind is used to make a decision rather than using a comprehensive set of facts that evaluates all options.
The use of similar attributes to judge the likelihood of an event occurring. This is in contrast to using a more comprehensive approach that would utilize statistics (e.g., base rates) to determine likelihood.
To make an estimate by applying adjustments to a particular reference value (i.e., the “anchor”).
When an individual looks to the behaviour of their peers to inform their decision-making, and their tendency to conform to the same behaviour their peers are engaged in.