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Question
natalia is interested in buying a new computer. she researches a specific computer and sees thousands of positive online reviews. natalia decides to buy that computer. present bias loss aversion herd mentality confirmation bias
Herd mentality refers to people following the actions or decisions of a large group. Natalia saw many positive online reviews (the actions/opinions of a large group) and decided to buy the computer, which is an example of following the crowd. Present bias is about preference for immediate rewards. Loss - aversion is the tendency to prefer avoiding losses over acquiring gains. Confirmation bias is about seeking information that confirms pre - existing beliefs.
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C. Herd mentality