Economic and Consumer Biases
Consumer biases influence how we value things, justify purchases, and react to scarcity or cost.
01
Mental accounting
Treating money differently depending on its category.
02
Money illusion
Focusing on nominal dollars instead of real purchasing power.
03
IKEA effect
Overvaluing something because you helped make it.
04
Ownership effect
Valuing what you own more than equivalent alternatives.
05
Scarcity bias
Wanting something more because it seems limited.
06
Commitment bias
Sticking with a prior position to appear consistent.
07
Preference falsification
Misstating preferences because honest preferences feel costly.
08
Price-quality heuristic
Assuming higher price means higher quality.
09
Effort justification
Valuing outcomes more because they required effort.
10
Time-saving bias
Misjudging how much time speed changes save.
11
Proportionality bias
Expecting big events to have big causes.
12
Denomination effect
Spending smaller bills or units more easily than larger ones.
13
Pain of paying
Feeling cost differently depending on payment method.
14
Consumer surplus bias
Overfocusing on the deal instead of the need.
15
Identifiable victim effect
Responding more to one named person than many unnamed people.
16
Compassion fade
Feeling less as the number of people affected grows.
17
Psychic numbing
Becoming emotionally numb to very large harms.