Editing Behavioral economics (section)

=== Heuristics and cognitive effects ===
Besides searching, behavioral economists and psychologists have identified other [[heuristics]] and other cognitive effects that affect people's decision making. These include:

'''Mental accounting'''

[[Mental accounting]] refers to the propensity to allocate resources for specific purposes. Mental accounting is a behavioral bias that causes one to separate money into different categories known as mental accounts either based on the source or the intention of the money.<ref>{{Cite web|last=behavioralecon|title=Mental accounting|url=https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/mental-accounting/|access-date=2020-09-21|website=BehavioralEconomics.com {{!}} The BE Hub|language=en-US}}</ref>

'''Anchoring'''

[[Anchoring (cognitive bias)|Anchoring]] describes when people have a mental reference point with which they compare results to. For example, a person who anticipates that the weather on a particular day would be raining, but finds that on the day it is actually clear blue skies, would gain more utility from the pleasant weather because they anticipated that it would be bad.<ref>{{Cite web|title=Anchoring Bias - Definition, Overview and Examples|url=https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/anchoring-bias/|access-date=2020-09-21|website=Corporate Finance Institute|language=en-US}}</ref>

'''Herd behavior'''

This is a relatively simple bias that reflects the tendency of people to mimic what everyone else is doing and follow the general consensus.

'''Framing effects'''

People tend to choose differently depending on how the options are presented to them. People tend to have little control over their susceptibility to the framing effect, as often their choice-making process is based on intuition.<ref>{{cite book |last1=Cartwright |first1=Edward |title=Behavioral economics |date=2018 |location=Abingdon, Oxon |publisher=Routledge |isbn=9781138097117 |page=45 |edition=Third}}</ref>