BEHAVIOURAL ECONOMICS 

On April 14, 1994, 7.36am AWACS radar airplane takes off. This place is on surveillance (observation) mission, watching over Iraqi airspace. At the same day, a United Nations humanitarian operation takes place. This aims to help Kurds who fled to refugee camps in the m...

Groupthink is present in space shuttle Challenger case. One of the worst space disasters was led by flawed decision making process and decision made a night before the launch. In 1986, Kennedy Space Centre experienced the Challenger explosion killing seven astronauts....

Groupthink is present in space shuttle Challenger case. One of the worst space disasters was led by flawed decision making process and decision made a night before the launch. In 1986, Kennedy Space Centre experienced the Challenger explosion killing seven astronauts....

Groupthink is was first introduced by Janis in 1972. It is defined as mode of thinking that people engage in when are deeply involved in a cohesive group and when striving for unity override members’ motivation to realistically apprise alternative courses of action.

Groupthink is present when a cohesive team experiences tremendous pressures for conformity and people strike for unanimity at the expense of critical thinking. This is more likely to arise when groups are highly cohesive and face great deal of stress and pressure. Grou...

Groupthink is present when a cohesive team experiences tremendous pressures for conformity and people strike for unanimity at the expense of critical thinking. This is more likely to arise when groups are highly cohesive and face great deal of stress and pressure. Grou...

Groupthink is present when a cohesive team experiences tremendous pressures for conformity and people strike for unanimity at the expense of critical thinking. This is more likely to arise when groups are highly cohesive and face great deal of stress and pressure. Grou...

Investors have strong preferences to hold on to stocks that are selling below purchase prise so that could avoid being “losers”. Instead, they sell stocks that are selling above the purchase price, so they could come out as “winners” (Odean, 1998).

Bias against action leads people to procrastinate making first-choice investments. When procrastinating, we may be sacrificing our long-term financial well-being. Individuals do not put enough effort in vital decisions.

People tend to keep investments as they are. This is also present in business world. For instance: CEOs are reluctant to sell their business even though this might result in a better position for the firm. Status quo bias can be explained by several theories.

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