Search results
Results from the WOW.Com Content Network
In psychology and cognitive science, a memory bias is a cognitive bias that either enhances or impairs the recall of a memory (either the chances that the memory will be recalled at all, or the amount of time it takes for it to be recalled, or both), or that alters the content of a reported memory. There are many types of memory bias, including:
Economic freedom, or economic liberty, refers to the agency of people to make economic decisions. This is a term used in economic and policy debates as well as in the philosophy of economics . [ 1 ] [ 2 ] One approach to economic freedom comes from the liberal tradition emphasizing free markets , free trade , and private property .
Home bias in equities is a behavioral finance phenomenon and it was first studied in an academic context by Kenneth French and James M. Poterba (1991) [3] and Tesar and Werner (1995). [ 4 ] Coval and Moskowitz (1999) showed that home bias is not limited to international portfolios, but that the preference for investing close to home also ...
Systemic bias is the inherent tendency of a process to support particular outcomes. The term generally refers to human systems such as institutions. Systemic bias is related to and overlaps conceptually with institutional bias and structural bias, and the terms are often used interchangeably.
The Cognitive Bias Codex. A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. [1] [2] Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate their behavior in the world.
Loss aversion was also used to support the status quo bias in 1988, [9] and the equity premium puzzle in 1995. [10] In the 2000s, behavioural finance was an area with frequent application of this theory, [ 11 ] [ 12 ] including on asset prices and individual stock returns.
Regret aversion is not only a theoretical economics model, but a cognitive bias occurring as a decision has been made to abstain from regretting an alternative decision. To better preface, regret aversion can be seen through fear by either commission or omission; the prospect of committing to a failure or omitting an opportunity that we seek to ...
Inflationary bias is the outcome of discretionary monetary policy that leads to a higher than optimal level of inflation. Depending on the way expectations are formed in the private sector of the economy, there may or may not be a transitory income increase.