Bounded Rationality–Everyone Makes Mistakes

Overview:

In this lesson, we will look at the role of cognitive biases in economic theory. Students will think about the concept of bounded rationality, looking specifically at their own heuristics and intuitions. In particular, we will look at confirmation bias, framing, anchoring and egocentrism.

NBEA Standard(s):
  • Personal Finance, I. Personal Decision Making
  • Personal Finance, VIII. Protecting Against Risk

Lesson Plan Details:

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