I’m doing some practice problems and want to know explicit differences on how each of these biases differ from each other from a testing standpoint.
Confirmation vs Representativeness
For confirmation, are you specifically seeking criteria that fits your view of the world? For representativeness, is it more of a reaction to markets/price performance that you think represent the long term behavior, but is really short term behavior?
Regret Aversion vs Loss Aversion
If the situation is someone selling winners too early, which is that more closely aligned with- Regret Aversion or Loss Aversion? On one hand, I’m thinking Loss Aversion can be either of the holding losers/selling winners behavior (but tested more for holding losers), whereas Regret Aversion is the herding behavior where you don’t want to miss out on winners that other people are holding onto.
Availability vs. Herding
When following word of mouth or name recognition, would you go with herding or availabiity? Seems to kind of fit both, but with just that context, is it closer to Availability? I know Herding has a nuance of regret aversion to it, but not sure what the difference is.