The basics of behavioral economics starts out with a few definitions needed to explain the three behavioral economics concepts discussed here: Bounded Rationality, The Availability Heuristic, and Optimism Bias
In our study we found no decrease in optimism bias
the media, though the optimism bias
could push consumers to understate
Most SMB owners readily address their accounting and insurance needs with help from professionals, but when it comes to legal matters, their optimism bias
is particularly acute and exacerbated by fears that professional legal guidance is too expensive and a hassle.
Scheme cost estimates are currently at around PS26m with this figure taking into account optimism bias
causes people to exaggerate their odds of success.
Guided by the Elaboration Likelihood Model (ELM) and the Motivation-Ability-Opportunity framework, the current study examines the roles of the consumer's optimism bias
and subjective health literacy in responding to the risk disclosure in DTCA.
Last month I raised the concept of optimism bias
and how that bias can color our perception of risk.
The optimism bias
shows up every time a company has to restate its earnings.
An often encountered bias in our world is termed the "Planning Optimism Bias
According to Bazerman (2006), the optimism bias
will lead economic agents to believe that their future will be better compared to others.
The authors employ an economic theory framework to discuss how cost-plus contracts typically used during this phase have inadvertently reinforced the sources of contractor and government optimism bias