Behavioral Economics Vocabulary

noun a person's emotions, especially strong or lively ones

• Economists often refer to the concept of animal spirits to explain the unpredictable behavior of markets.
• Some investors believe that animal spirits drive the stock market more than anything else.
• When it comes to investing, it's all about those animal spirits driving the market.
• The entrepreneur's animal spirits were evident as she fearlessly pursued her new business venture.

noun a word that represents a person, place, thing, or idea

adjective a word that describes or modifies a noun

• He acted on blind impulse without considering the consequences.
• She just followed her blind impulse and bought the dress without trying it on.
• I don't know why I did it, must have been a blind impulse.
• Sometimes we are driven by blind impulses that we cannot control.

adjective having or showing a lack of generosity; stingy

• The miserly old man refused to donate any money to the charity.
• My neighbor is so miserly, he never buys anything new.
• Don't be so miserly, just pitch in for the pizza.
• Her miserly attitude towards sharing her ideas stifled the creativity of the team.

noun a tendency to choose or do something regularly; an inclination or predisposition toward a particular thing

• Her proclivity for detail-oriented work made her the perfect candidate for the job.
• I've noticed your proclivity for sleeping in on weekends.
• His proclivity for drama always makes things interesting.
• The artist's proclivity for bold colors shines through in all of his paintings.

noun excessive or extravagant spending or lavishness

adjective prodigal (relating to or characterized by prodigality)

• The prodigality of the royal family's spending was a cause for concern among the citizens.
• His prodigality knew no bounds when it came to buying the latest gadgets.
• She's known for her prodigality when it comes to splurging on designer clothes.
• The artist's prodigality of colors in his painting created a mesmerizing effect.

noun the quality or state of being rational; the quality of being based on or in accordance with reason or logic

• The decision-making process is often guided by rationality and logic.
• Using rationality can help you make better choices in life.
• Dude, you gotta think with some rationality before making a move.
• In matters of the heart, rationality often takes a backseat to emotions.

verb to discourage or prevent someone from taking a particular action by creating a disincentive

• The government implemented policies to disincentivize smoking through heavy taxation.
• My parents disincentivize me from staying out late by setting an early curfew.
• The coach tries to disincentivize slacking off during practice by making us run extra laps.
• The lack of recognition disincentivizes employees from putting in extra effort at work.

noun a word that represents a person, place, thing, or idea

preposition a word that shows the relationship between a noun or pronoun and other words in a sentence

• The employees voting to cut their own bonuses was like turkeys voting for Christmas.
• It's like turkeys voting for Christmas when my friends choose to skip the holiday party.
• The students agreeing to take an extra exam are basically like turkeys voting for Christmas.
• His decision to quit his job without a backup plan was like turkeys voting for Christmas.

noun the inclination for people to conform to the actions and opinions of a group

• The company's decision-making process was often influenced by herd mentality.
• People tend to follow the herd mentality when making decisions in groups.
• Don't just go along with the herd mentality, think for yourself!
• She felt like she was being swept along by the herd mentality, unable to break free from the group's influence.

noun a lack of self-control or inability to act in accordance with one's own values or goals

• Acrasia is often defined as a lack of self-control or weakness of willpower.
• I struggle with acrasia when it comes to resisting late-night snacks.
• I totally have acrasia when it comes to binge-watching my favorite TV show.
• Acrasia is like a little devil on your shoulder tempting you to make bad decisions.