Crossword 2

1. The economic experiment involving two people deciding how to split money, with one proposing a division and the other accepting/rejecting.
5. He is the father of behavioural economics.
7. The concept of people comparing themselves to others when evaluating their own well-being.
9. Author of “Thinking, Fast and Slow” which explores cognitive biases and heuristics.
10. A fallacy involving the underestimation of the time required to finish a task.
11. This fallacy describes the false assumption that an event is unlikely based on past experiments.
14. Cognitive shortcuts or rules of thumb that simplify decisions.
15. The idea that individuals often place a higher value on losses than on equivalent gains.
16. This idea states that people will continue to invest in a losing project simply because they are already heavily invested, even if it means risking more losses.
17. The phenomenon where people place more value on the same item if they own it compared to when they don’t.
18. Believing that if one person gains wealth, someone else must lose an equal amount.

2. A tendency to overestimate the likelihood of rare events.
3. This mentality is a scenario where consumer decisions are influenced by what other people or most of the other population is doing.
4. This is the exaggerated belief that you are better than others.
6. It is the current relative valuation placed on receiving a good at an earlier date compared with receiving it at a later date.
8. This fallacy involves suggesting that if we allow one event to happen, a series of negative events will inevitably follow.
12. Prospect Theory is a fundamental concept in behavioral economics developed by psychologists Daniel Kahneman and ______ in 1979
13. This effect is a heightened likelihood of choice selection by adding unappealing.