The Effect of Behavioural Biases on Financial Decisions
  • All Biases
  • Categories
    • Heuristics and Judgemental Biases
    • Choices: Framing and References
    • Social Factors
  • About

Preference Reversals

Preferences are considered rational if they remain consistent over time. In reality, however, we do change our minds, have problems committing to decisions and are biased towards present rewards.

Hyperbolic Discounting & Present Bias
According to this bias, value is not discounted at a fixed rate over time, but closer rewards are valued much higher than distant ones, at a diminishing rate. In other…
Self-Control and Commitment
It’s when we are unable to recognize that our present and future selves have different needs.
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