Key Concepts:
Endowment Effect
Attributing extra value to a possession just because you own it
Mental Accounting
Bucketing money to spend
Self Control Problems
Availability Heuristic
Heuristics are mental shortcuts that we take to decide something quickly Availability Heuristics tricks us by giving us examples around us, which might not be the true representation of the real world.
Loss Aversion
Losing something is more difficult than finding something of same value This is why people are very reluctant to take risks
Challenging the Efficient Market Hypothesis
Nudging and Libertarian Paternalism
There is a whole book on this by Thaler - Nudge
Anchoring Bias
Being influenced by first data points that are provided, even if they are irrelevant.
Coase Theorem
Framing Effects
Framed differently, people might be manipulated to chose the same thing.