Semantron 23 Summer 2023


Opportunity cost: the next best alternative which is forgone when a particular alternative is chosen. Preference: a decision or option which maximize s an agent’s utility Present bias: a mental shortcut in which the most short-term information or preferences are disproportionately favoured or overweighted, often resulting in a neglect of longer-term preferences and an opportunity cost of utility. Representativeness heuristic: a mental shortcut in which a small sample of most salient, frequent, and short- term information is given as a generally applicable and representative of a wider population of cases. This often relies on stereotyping and oversimplifications and can be most relevant in addressing discriminatory bias or misinformation. Second degree price discrimination: a type of price discrimination in which different units of a product are sold at different prices depending on quantity, e.g. 3 for 2, buy one get one free, wholesaling, etc.


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