Jumping to Conclusions: When People Decide Based on Insufficient Information

  Jumping to conclusions is a phenomenon where people reach a conclusion prematurely, on the basis of insufficient information. For example, a person jumping to conclusions might assume that someone they just met is angry at them, simply because that person wasn’t smiling at them while they talked, even though there are many alternative explanations …

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Carpe Diem: Seize the Day

  Carpe diem is a Latin phrase that means “seize the day”. It encourages people to focus on the present, appreciate the value of every moment in life, and avoid postponing things unnecessarily, because every life eventually comes to an end. For example, the principle of ‘carpe diem’ suggests that if there’s an event that …

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Homo Economicus: On the False Assumption of Perfect Rationality

  The term homo economicus (‘economic man’) refers to people as they’re portrayed in certain economic theories, where they’re seen as ideal decision-making machines, with flawless rationality, unlimited cognitive capacity, perfect access to information, and a narrow-range of consistent, self-interested goals. Roughly speaking, this means that the homo economicus can be seen as someone who …

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