Unit 2.4 · Critique of the Maximizing Behaviour of Consumers and Producers
Behavioral Biases
AO3HL
Syllabus Requirement
Rule of thumb, anchoring and framing, availability bias—how cognitive shortcuts influence decision-making.
Assessment Objectives
AO3Synthesis and Evaluation
Summary
Behavioral biases are systematic patterns in decision-making that can lead consumers away from fully rational choices. Instead of carefully comparing all costs and benefits, consumers often use mental shortcuts, also called heuristics. These shortcuts can save time, but they may also cause mistakes. Important behavioral biases include rules of thumb, anchoring, framing, and availability bias.