Loss Aversion

Loss Aversion

On a scale of 1 to 10, how good do you feel today? Now, think for a moment—what could bring you to a perfect 10? Maybe a dream vacation to the Caribbean, a promotion, or that new car you’ve been eyeing? It’s easy to imagine how such gains could enhance our happiness....
Inductive Thinking

Inductive Thinking

Inductive reasoning or inductive thinking is a natural part of how we navigate the world. We observe patterns, make predictions, and form conclusions based on our experiences. It’s how we build trust, make decisions, and move forward in life. But what happens when...
The Anchor

The Anchor

When faced with uncertain information or the need to make estimations, our minds seek reference points to guide us. These reference points, known as anchors, play a crucial role in shaping our judgments and decisions. From estimating historical events to valuing real...
Gambler’s Fallacy

Gambler’s Fallacy

In the summer of 1913, something extraordinary occurred in Monte Carlo that would become a lasting illustration of human psychology. Onlookers crowded around a roulette table, mesmerized as the ball landed on black not once, not twice, but an astonishing twenty times...
Base Rate Neglect

Base Rate Neglect

Mark is a thin man from Germany with glasses who enjoys listening to Mozart. Based on this description, which is more likely? A) Mark is a truck driver, or B) Mark is a professor of literature in Frankfurt? Despite the seemingly fitting image of a thoughtful, cultured...