Industry-specific factors in Business

Recency bias impacts decision making equally for positive and negative experiences.

Overconfidence bias leads a person to underestimate their abilities or judgment.

When experiencing a bear market, people tend to prefer risky assets.

Daniel Kahneman and Amos Tversky were both economists who won the Nobel Prize in Economics.

Under the overconfidence bias, individuals tend to take on risks without proper assessment.

Recency bias causes individuals to base their decisions solely on past events without analysis.

A fall in prices of assets typically leads people to invest more in those assets according to the text.

Psychologist Daniel Kahneman and economist Amos Tversky identified the impact of recent events on decision making.

In a bull market, people usually allocate less than advised for risky assets.

The recent experience can override thorough analysis in decision making.