Across
- 2. Mentality: A cognitive bias where individuals mimic the actions, opinions, and decisions of a group, often overriding their own judgments and preferences.
- 3. Choice Theory: A theory that suggests individuals make decisions through rational calculation to maximize their self-interest, based on preferences, constraints, and available information.
- 5. Cost Fallacy: A cognitive bias where further investments are justified on the basis of previously incurred, unrecoverable costs.
- 6. Finance: The management of an individual's financial decisions, including budgeting, saving, spending, and planning for the future.
- 9. Bias: A cognitive bias where an individual places an undue emphasis on the first piece of information (the "anchor") and uses it as a reference point for all subsequent decisions, regardless of its relevance or accuracy.
- 10. Accounting: A cognitive bias that leads individuals to categorize and treat money differently based on its origin or intended purpose.
- 11. Effect: A cognitive bias that occurs when people ascribe more value to things merely because they own them.
- 12. Mental shortcuts or rules of thumb that simplify decision-making processes.
Down
- 1. Economics: A social science that studies how psychological and cognitive factors influence economic decisions, challenging the assumption of the rational choice theory in traditional economics.
- 4. Aversion: A cognitive bias where the discomfort of something losing value, is perceived as greater than the pleasure derived from it gaining in value.
- 7. A social science that studies the production, distribution, and consumption of goods and services to satisfy needs and wants, given the scarcity of resources.
- 8. Bias: A systematic deviation from rational thinking, leading to illogical judgments and decisions due to mental shortcuts and influences.