The framing effect is a cognitive bias that highlights how individuals react to the context or presentation of information rather than the information itself. The framing of a decision can influence people's perceptions, judgments, and choices. This concept has significant implications for decision-making in various areas, such as finance, health, and public policy.

Status quo bias is a psychological inclination where individuals exhibit a preference for maintaining the current state of affairs, often resisting changes even when objectively advantageous alterations are available. It manifests as a tendency to favor familiarity and comfort over potential improvements.

The Sunk Cost Fallacy is a cognitive bias where individuals continue to invest in a decision or project based on the cumulative prior investment (sunk costs), even when it is not rational to do so. In other words, people may feel compelled to continue with a course of action because of the resources they have already invested, even if the future benefits are unlikely or the costs outweigh the benefits.

The Endowment Effect is a psychological phenomenon in behavioral economics where people tend to assign higher value to items simply because they own them. In other words, individuals tend to overvalue objects in their possession compared to the same objects not owned. This can influence decision-making in various contexts, such as buying, selling, or trading goods.

Mental accounting is a psychological concept where individuals categorize and treat their money differently based on subjective criteria rather than seeing it as a unified pool of funds. Understanding this concept is crucial because it influences how people make financial decisions and allocate their resources.

Loss aversion is a concept in behavioral economics that describes the tendency for people to strongly prefer avoiding losses over acquiring equivalent gains. Essentially, the emotional impact of losing something is felt more strongly than the pleasure derived from gaining something of equal value.