Anchoring Effect: This refers to the tendency for people to rely too heavily on the first piece of information they receive when making decisions. For example, if you see a shirt originally priced at $100 but now on sale for $50, you might consider it a great deal even if it's not something you really need.
Loss Aversion: This concept describes our tendency to strongly prefer avoiding losses over acquiring gains. In other words, we feel more pain from losing $100 than we feel pleasure from gaining $100.
Confirmation Bias: It refers to our tendency to seek out and interpret information in ways that confirm our existing beliefs or hypotheses. For instance, if someone believes that all politicians are corrupt, they may only pay attention to news stories that support this belief while dismissing evidence against it.