Behavioral Economics
2024-11-04 18:06:10 0 Report
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This mind map provides an insightful exploration of 'Behavioral Economics,' a field that examines how psychological factors influence economic decision-making. It delves into concepts like outcome bias, where success is often misattributed to correct actions, potentially leading to misguided decisions. Adaptive bias highlights human adaptability to circumstances, with strategies to prolong happiness through varied stimuli. The Egg Theory, or 'Ikea Effect,' emphasizes the overvaluation of self-invested work. Subjective probability discusses the discrepancies between intuition and objective probabilities, while the Veblen effect explores consumer preference for high-priced goods as a status symbol. These insights offer practical applications in understanding consumer behavior and decision-making.
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Outline/Content
Outcome bias
concept
Seeing a person achieve success immediately believing that all his actions are correct and reasonable.
Once right doesn't mean always right!
consequences
It will lead us to deduce the wrong reasons from the correct results, and because we firmly believe and execute this wrong reason, we will slide into the abyss of failure.
How to avoid?
Induct and then deduce
Deduce the cause from the result, and then deduce the result from the cause.
Three Questions Before Preschool
Is there really a controllable human factor in this result?
Does the person sharing really know what the reasons for human controllability are?
Is it possible that what he is so proud of is actually the flaw on the jade?
Adaptive Bias
concept
People can eventually adapt to both good and bad environments.
Only the moment of gaining is joyful, and the moment of losing is painful.
Application
A meditation technique
Break others' and your own adaptability
Three methods
Provide rewards in stages to prolong happiness.
Provide changing stimuli to give users a sense of unexpected happiness.
Make good use of mutual comparison, so that users can gain happiness brought by comparison.
Egg Theory
concept
Also known as the "Ikea Effect", it refers to the phenomenon where people tend to overestimate the value of an item to which they have invested more labor or emotion.
Application
Make users feel involved
Voting, choosing, matching, and so on.
Get users to work hard
Leave 30% of the work to the users themselves, and the value of the product can be doubled.
Subjective probability
concept
People's intuition and objective probabilities are often inconsistent, and the phenomenon of psychological probability and objective probability not matching is called probability bias.
cause
Representativeness Bias -> Generalizing from Specific Cases
Availability Bias => Seeing is Believing
The anchoring effect -> First impressions
Solve
Learn mathematics well, don't rely on subjective judgment
For problems where it's impossible to verify the objective probability, consult professionals or listen to more opinions.
Veblen effect
concept
The higher the price of some products, the more likely they are to receive consumer favor => Conspicuous consumption
Application
Expensive is not the goal, showing off is
Expensive goods must be designed to make outsiders immediately aware of their high price.
The poor also have a need for showing off.
"Showing off" => Help customers show off, don't expose
Doctors can even use the Veblen effect to cure diseases
People's preference for "expensive" can even cure diseases.
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