Behavioural Economics

2. _________ architecture is the design of decision-making environments that influence individual choices by presenting options, defaults, and information in specific ways.
4. Aversion: The tendency for individuals to feel the pain of losses more strongly than the pleasure of equivalent gains, leading to risk-averse behavior.
5. The idea that individuals have limited cognitive abilities and information-processing capacity, leading to simplified decision-making strategies is calles ___________ rationality
7. The tendency to seek, interpret, and remember information in a way that confirms one's preexisting beliefs or hypotheses, while ignoring or undervaluing contradictory evidence is called _______________ bias.
10. The cognitive bias where individuals rely heavily on the initial information presented when making decisions or estimates.

1. a field of study combined with economics to study economic decision making
3. Mental shortcuts or rules of thumb that individuals use to simplify complex decision-making processes and arrive at judgments or choices more quickly.
5. a personal and often unreasoned judgment for or against one side in a dispute
6. A behavioral economic theory that explains how people evaluate and make decisions under uncertainty, emphasizing the impact of gains and losses relative to a reference point.
8. where the presentation of options can influence decision-making
9. not logical or reasonable
11. Subtle changes in the choice architecture that encourage individuals to make desired choices without removing options or limiting freedom.