Tag: economics

Infographic of Psychological Biases in Decision Making

Infographic of Psychological Biases in Decision Making

I just love psychological experiments around our human biases.

In this case, Dan White visualized some of the psychological biases mentioned in Richard Shotton‘s book The Choice Factory“.

These biases make for irrational human behavior in the way we make daily decisions.

For example, you will be prepared to pay more for a cookie, when there are less of them in the jar. The generic principle here is that we assign higher valuations to objects under conditions of scarcity.

Once you are aware of such psychological biases, you will start to notice how they are (mis)used nearly everywhere these days. Particularly in sales and marketing. In restaurants, shops, online, and in virtually any case where we act as a consumer, we are subconciously influenced to make certain purchasing decision.

Nudging, is what they call these attempts to manipulate your behavior.

Maybe not so ethical, but still these infographics look amazing and these biases are good to be aware of!

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