6 Questions
What is the primary function of social norms in a group?
To guide individual behaviors based on collective expectations
What is the term used to describe the tendency to assign subjective values to money in different accounts?
Mental accounting
What is the term used to describe the phenomenon where people are more willing to take risks with 'found' money?
House-money effect
What is the term used to describe the tendency to hold onto losing investments due to past investments rather than current rational assessment?
Sunk cost fallacy
What is the term used to describe the tendency to avoid realizing losses by holding onto losing stocks and quickly selling winning stocks?
Disposition effect
What is the term used to describe the varying degrees of strictness in societal norms across cultures?
Tightness and looseness
Understand how social norms influence individual behavior, cultural expectations, and policy decisions. Explore the concept of societal tightness and looseness, and how mental accounting affects our financial choices.
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