Table 1.

Behavioral economics biases and examples of behaviors or attitudes

Bias	Examples of behaviors or attitudes
Bounded rationality	• Optimism and overconfidence: when people are overconfident about their own good fortune, abilities, and intuition and can display risk-taking behaviors • Availability heuristics: when the likelihood of an event is interpreted according to the vividness with which people can think of an example of that event or even the emotional reactions (affect heuristics) that guide their decisions, which, in turn, are driven by salience • Representativeness heuristics: i.e., interpreting the likelihood of an event based on its similarity to other events rather than relying on more objective criteria • Status quo bias: acting out of inertia or being reluctant to change the status quo.
Bounded willpower	• Time inconsistent preferences: when people heavily weigh short-term vs. long-term aspects when making decision (e.g., not being able to work hard today for a future reward) • Ego depletion and decision fatigue: even if they succeed at first, self-control tends to deteriorate over time • Hyperbolic discounting: when people favor immediate but smaller rewards instead of delayed but larger and highly-valued rewards • Present bias: people’s preferences depend on the timing of the decision
Bounded selfishness	• How others behave influences an individual’s choices, either by changing social norms (i.e. rules of acceptable behavior) or by providing additional information • Peer effect: when an individual’s decisions and alternative courses of action depend on what others do or think