Anchoring Behaviour Economics

The Behavioural Economics series: Anchoring

Our decisions are often steered by ‘anchors’ which give us a starting point to base our final decision on. The first…


The Behavioural Economics series: Value Perception

Perceived value is the value that a product or service has in a consumer’s mind. They’re usually unaware of what goes…


The Behavioural Economics series: Restraint bias

As Oscar Wilde once said: “I can resist everything except temptation.” The Kellogg School of Management, in…


The Behavioural Economics series: Status Quo

When it comes to making decisions, we often unconsciously consider things that are comfortable and familiar.  Things…


The Behavioural Economics series: Commitment: Personal Investment

The more involved people are in creating something, the better they feel about the end product! This can lead to…


The Behavioural Economics Series: Reciprocity

In response to friendly actions, people are frequently much nicer and much more cooperative than predicted. And…


The Behavioural Economics Series: Priming Effect

Priming is something that happens at a very subconscious level. Often when we are exposed to a stimulus like sight,…


The Behavioural Economics Series: Scarcity heuristic

As the saying goes, “we always want what we can’t have”. And that’s exactly what the scarcity heuristic is. It’s a…


The Behavioural Economics Series: Bizarreness Effect

Understanding why we make the choices we make gives you a greater opportunity to influence them, and is changing the…


The Behavioural Economics Series: Norms

As individuals, we're genetically programmed to “follow the herd”, which in more primitive times meant our survival.…


The Behavioural Economics Series: Chunking

The chunking theory groups lots of smaller elements in a sequence or process into sections to make it easier to decode…


The Behavioural Economics Series: The Framing Effect

The framing effect explains how we alter our decisions depending on how information is presented to us. We’ll react in…


The Behavioural Economics Series: Commitment - the public pledge bias

We tend to be consistent with what we have previously done or said we will do, particularly if this is in public. The…


The Behavioural Economics Series: Authority bias

We listen to the word of experts and value their opinion over others, even to the point of investing in products they…