Under the difficulty and emotionality of the decision we need to make, paralyzed, we just go for the default option offered
[When people complete a questionnaire with some answers pre-filled]
You might think that people sometimes check the default box because they can’t be bothered making a choice. It sometimes might be true for daily trivial choices, but in case of complex decisions to make, unable to make our own mind, we take whatever option is offered to us. We in fact refuse to take the responsibility for our own decisions.
Context and environment matters in the way we make choices.
Probability is not a mere computation of odds on the dice or more complicated variants; it is the acceptance of the lack of certainty in our knowledge and the development of methods for dealing with our ignorance. Outside of textbooks and casinos, probability almost never presents itself as a mathematical problem or a brain teaser. Mother Nature does not tell you how many holes there are on the roulette table, nor does she deliver problems in a textbook way (in the real world one has to guess the problem more than the solution).
Loss aversion is a notion derived from behavioral economics. In finance, this aversion to loss is reflected in the reluctance ...
A "sunk cost" is just what it sounds like: time or money you've already spent. The sunk-cost fallacy is when you tell yourself that you can't quit because of all that time or money you spent. We shouldn't fall for this fallacy, but we do it all the time.
Dominated Alternatives: Can introducing a third decoy option make you more likely to choose the option, I secretly want you to choose?
In marketing, this is also called the decoy effect or attraction effect or asymmetric dominance effect. A phenomenon whereby the introduction of a third option leads to a change in choice.
Dominated alternatives here quickens the choice patterns of consumers by dulling the relevance of one option by the introduction of another, thereby making one option almost invalid.
More simply, when deciding between two options, an unattractive third option can change the perceived preference between the other two.
Yerkes and Dodson's experiment should make us wonder about the real rela- tionship between payment, motivation, and performance in the labor ...